Rewe’s strong 2020 results: three reasons for growth

Date : 20 April 2021

Keshia Beadle

Senior Retail Analyst

Rewe, following previously trailing its performance in 2020, has confirmed its results for the year. It said the Group’s external turnover rose 20.4% to €75.3 bn, while its turnover not including independent retailers increased by 23.9% to €55.3 bn.

The numbers…

Rewe reported:

  • Rewe Group total external turnover: +20.4% to €75.3 bn
  • Rewe Group turnover not including independent retailers and at-equity entities: +23.9% to €68.2 bn
  • Turnover in Germany: +24.4% to €46.6 bn
  • Turnover in other countries: +22.7% to €21.6 bn
  • Retail International turnover: +2.4% to €10.4 bn
  • Penny Germany turnover: +5.4% to €8.0 bn
  • Discount International turnover: +8.3% to €5.5 bn

1. Impact of COVID-19

Rewe was able to offset the challenges seen in parts of its business, such as its tourism division, with strong growth in other areas.

2. Strength of operations in Germany

While the company saw strong growth across several of its markets, the strength of its operations in its home market underpinned its success in 2020. Underlining the success of multichannel retailers in its home market, Rewe reported in the Retail in Germany business segment, turnover rose 12.3% to €26.5 bn. Despite it ‘reaching a record level of €8 bn in external sales’, its Penny discount banner saw turnover increase by ‘only’ 5.4%.

3. Successful integration of Lekkerland

Rewe announced plans to acquire Lekkerland in 2019, making 2020 its full year of ownership and full integration. The acquisition of Lekkerland provided Rewe with a new avenue of growth in the expanding convenience sector in Germany and further European markets. Rewe reported Lekkerland generated an external turnover of €13.1 bn across its operations in Germany, Belgium, the Netherlands, and Spain.

Looking ahead to 2021 and further investment

Following its successful 2020 Rewe will invest further across its operations as it looks to embed its strategic initiatives. Following an investment of €1.9 bn in 2020, Rewe will increase this figure to €2.3 bn in 2021, while ‘planning similar investments for 2022 and 2023’. The money will be spent on modernising its stores, expanding its supply chain and logistics infrastructure and the on-going digitalisation of its operations.