Czech Online Grocer Rohlik Ramps Up German Expansion As Rivals Quit
ESM - European Supermarket Magazine
The industry magazine for C-suite executives and procurement managers working in the European grocery retail sector.
As foreign online grocery delivery rivals exit Germany, Czech Republic-based Rohlik Group is ramping up in Europe's biggest economy and is on track to break even within the next 12 months, founder and chief executive Tomá? ?upr told Reuters.
The privately held company, valued at more than $1 billion in 2021, operates under the Knupsr.de brand in Germany and opened in Berlin in April after launching in Munich in 2021 and Frankfurt in 2022.
Germany Expansion
It aims to add a further 15 German cities in the next few years after another fundraising round as it gets closer to a potential IPO, ?upr said in an interview last month at Rohlik's Prague headquarters.
"We have one eye on Hamburg, which would be the next city," ?upr said. "From Hamburg on, we would need to raise money."
Lidl and Kaufland parent Schwarz Group has reported a 'successful' financial year 2023 with an 8.5% increase in revenue to €167.2 billion.
The company attributed this growth to higher prices due to inflation, improved processes and further digitalisation.
Improved processes and cost management helped Schwarz Group to partially absorb higher purchase prices, particularly for merchandise, raw materials, energy and transport and interest rates.
By focusing on pricing and design of the product range, Lidl and Kaufland continued to offer attractive prices in an inflationary environment.
"This stable fiscal year 2023 reflects first and foremost our operational excellence across all fields of business and the impressive commitment of our employees," said Gerd Chrzanowski, general partner at Schwarz Group.
"We solidified our position in difficult economic times and continued on our growth trajectory. That was achieved because we are a unique ecosystem that covers the entire value chain," Chrzanowski added.
Ahold Delhaize is seeking to drive omnichannel loyalty sales penetration to more than 80% by 2028 and increase the share of private-label sales to 45% of its total assortment, as part of a series of measures announced at its 2024 Strategy Day.
During the period from 2025 to 2028, the Dutch retail group aims to achieve a net sales CAGR of 4%, as well as maintaining underlying operating margins averaging 4%.
Other measures announced by the group include a doubling-down on its sustainability ambitions and achieving a workforce that is ‘100% gender balanced, 100% reflective of our communities and 100% inclusive.’
Germany's Edeka Minden-Hannover has reported sales growth of 6.6%, to around €12.0 billion, in its 2023 financial year, amid challenging market conditions.
The retailer faced challenges in the form of cost pressure, inflation, and limited product availability last year, it said.
Board spokesperson Mark Rosenkranz added, “Nevertheless, as a cooperative group, we worked hard together, clearly pursued our strategic growth course and secured our market position.
“Our attractive and strongly regionally oriented product mix, as well as the continuous sharpening of our value for money offering, contributed to us being able to end 2023 successfully.”
Migros Supermarket AG, the supermarket business unit of Migros, will implement its new organisational structure on 1 July 2024.
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The move – aimed at implementing simplified processes, lean structures, and clear roles – will lead to the elimination of 150 full-time positions.
The job cuts will affect employees at the Limmatplatz location in Zurich and the company also indicated the possibility of layoffs.
“We want to be simpler and faster, that’s what we’ve geared the new organisation towards,” stated Peter Diethelm, CEO of Migros Supermarket AG.
“I am aware that dismissal is stressful and painful for the employees affected. It affects many valued and long-standing colleagues. It is important to me that we provide all affected employees with comprehensive and competent support in their professional reorientation,” Diethelm added.
Last year, the administration of the Federation of Migros Cooperatives (Migros-Genossenschafts-Bundes - MGB) decided to operate the supermarket business of Migros as an independent, centrally controlled company.
In 2023, demand for easy access to products outside of food options, grew by 54% worldwide, with further demand likely in the coming years. This is according to research from Glovo, the food delivery platform.
'Easy access' can be defined as anything-to-your-doorstep in 24 hours or less. Research from Glovo indicates that southwestern Europe has become particularly reliant on this category, with share of overall growth in the past year standing at 31%.
Daniel Alonso Moreno, VP of Q-Commerce of Glovo, spoke to ESM about the increasing consumer demand for convenience and accessibility and how Q-commerce is diversifying to address consumer needs.
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The latest issue of our magazine is out now
ESM's annual Private Label Issue sees us explore the own-brand landscape with Circana, count down to PLMA's World of Private Label Trade Show, chat to some of Europe's top retailers about private-label innovation within their organisations, explore the role of pricing with IPLC and examine how Ukrainian retailers are using private-label to bolster domestic producers impacted by the ongoing conflict.
We also look forward to The Consumer Goods Forum Global Summit, chat to Sampo P??llysaho, SVP of grocery operations at Finland's S Group, delve into the latest trends in fresh produce, and a lot more besides. Enjoy the issue!
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