Germany's REWE Group has posted sales of €61.2 billion in full-year 2018, a 4.7% increase on the previous year, and the first time the retailer has broken the €60 billion mark in sales.
In Germany, sales grew by 4.5%, while abroad, sales were up 5.2%. The foreign share of sales of REWE Group was 28.7% in the period, a 20 basis point rise on the previous year.
'Healthy Growth Course'
"The REWE Group is on a healthy growth course nationally and internationally," commented Lionel Souque, CEO of REWE Group. "In 2018, we once again profited from the fact that in recent years we have invested heavily in the modernisation and expansion of our markets and in the strengthening of our tourism division both in Germany and in other European countries.
"The strength of our core business gives us the opportunity to drive new business models and innovation, which are the basis for the continued positive development of our company in the future. As a cooperative group, we are pursuing our strategic priorities calmly and with foresight, even though the market and competitive environment is sometimes characterised by turbulence. "
REWE's domestic full-range supermarket operations, including REWE, REWE Center, REWE To Go, nahkauf and other wholesale partners, saw an increase in turnover of 12.3% in the year to €23.8 billion.
The period saw 180 stores converted to a new store concept focused on freshness, health and wellbeing, REWE 2020, while 152 former Sky stores were also converted to REWE outlets.
REWE's international supermarket operations, including the BILLA, BIPA, MERKUR and ADEG banners in countries such as Austria, the Czech Republic, Slovakia, Russia, Bulgaria, Croatia, Lithuania and the Ukraine, saw sales rise 6.2% to €9.4 billion.
In Austria specifically, sales were up 1.7% to €6.4 billion, the group said.
Discount Operations
Its PENNY discount business in Germany saw sales rise by 3.1% to €7.6 billion, with the number of PENNY branches increasing to 2,182 in the period.
Overseas, the PENNY operation in Italy, Austria, Hungary, Romania and the Czech Republic saw a 7.5% increase in sales to €4.8 billion. The strongest country, the company said, was Romania, where the group posted a 14.6% increase in sales.
"The balance sheet situation of the REWE Group is excellent," said REWE Group CFO Dr. Ing. Christian Mielsch
"We have the strength to keep our investments at a high level in the future and plan to invest around €2 billion in the current financial year. This is the prerequisite for continuing to grow dynamically and profitably in trade and tourism - nationally and internationally."
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
