Rising energy and electricity prices, strained supply chains and extremely price-sensitive consumers: The challenges in these times are enormous. REWE stores and their teams are tackling them and building on their proven strengths.
After a forced break of several years, retailers, market managers and managers were finally able to meet in person again this year at the regional annual meetings. The meetings offered good opportunities for intensive dialogue and clear words. The participants eagerly awaited the reports from the REWE Group Management Board.
Lionel Souque
Lionel Souque focussed on the current macroeconomic environment. "2022 was a very challenging year for all of us, including us as REWE Group. The effects of the coronavirus pandemic and the outbreak of the war of aggression in Ukraine led to a number of challenges - such as the rise in raw material and energy prices or supply bottlenecks. All of this led to rising purchase prices and higher energy costs and rents, among other things." Although individual commodity prices such as sunflower oil are currently easing, the challenges remain high: many consumers say they can afford significantly less than before - and are even saving on food, Souque added. As a result, discounters are currently winning. And customers are also paying more attention to prices in REWE stores and are increasingly opting for entry-level price brands and promotional items, for example.
Telerik Shishmanov
Overall, however, REWE Group had a good business year in 2022: "Total turnover rose to a high level - also due to inflation - while the operating result (EBITA) fell slightly below the previous year's level," added REWE Group CFO Telerik Schischmanow. The reason for the latter was cost increases and the deliberate investment in sales prices in favour of customers.
Peter Maly
Peter Maly, Chief Operating Officer (COO) and responsible for the full-range in Germany, picked up the ball and emphasised REWE's competitive advantages from a customer perspective: reliable and inexpensive purchasing, the best quality and freshness and, above all, "REWE has the best employees!"
Maly appealed to the entrepreneurial spirit of independent retailers and called for courage, because there was no reason to complain: "We have come through the crises well." REWE stores were also able to increase their revenue in the past year 2022, with the nationwide sales volume exceeding the 30 billion euro mark for the first time. The average purchase remained at a consistently high level - an indication of customers' strong loyalty to the REWE brand. "We can offer entry-level prices, but we can also do more: we can offer regionality, locality and we are strong when it comes to vegan products," emphasised the REWE Management Board member. The late opening hours are also a unique selling point. "We shouldn't question this, because the trend is currently moving back towards late shopping," Maly continued. REWE is also taking unconventional approaches to reach as many customers as possible. The most recent example is a supermarket bus that has recently been touring the REWE Region Mitte. It is the brainchild of an independent businessman and is another example of entrepreneurial creativity, one of REWE Group's strengths.
Thomas Nonn
"People make markets," said Thomas Nonn, Divisional Director Self-Employment and Co-operative. Indeed, self-employment as a REWE salesperson is a success story. The number of partner merchants has risen from 933 to 1,370 within ten years. And it is set to continue growing strongly; REWE intends to step up the pace of privatisation in the coming years in order to further increase the number of stores operated by independent retailers. Nevertheless, "the store system will continue to play an important role in the full-range assortment in the future," says Nonn.
His conclusion: "Employees remain the key to success in the market. Finding the right people and retaining them for the long term is more important than ever.
