Germany-based Edeka generated sales of €61 bn in 2020, a rise of 9.5%, or €5.3 bn, on the previous year. The performance was driven by COVID-19, which saw it position itself as a responsible grocer, while it also added new stores across its major banners.
Strength across banners…
Edeka branded stores generated sales worth €33.1 bn, a rise of more than €4 bn on 2019’s figure, with 82 new stores being added and taking its total to 3,600. Edeka branded stores saw sales growth of 14.2% as shoppers were forced to change their buying behaviours. Netto Marken-Discount, meanwhile, generated sales of €14.6 bn, as it opened 100 new stores under the banner. Netto’s sales increased by 7.9% during 2020, with it generating an additional €1.1 bn versus 2019.
…As Edeka invested in its operations
Edeka invested €1.9 bn in 2020 to open the new stores, in updating existing ones, its logistics network and production facilities. A key area of focus, given it is a differentiator for Edeka, the organisation also invested in the development and training of its staff.
Investment to continue in short term
Edeka is forecasting flat revenues in 2021 after a strong start to the year, which has seen revenues rise 6%. To help it maintain its strength in the market, Edeka will continue to invest in its operations, increasing its amount for investment to €2.3 bn for 2021. Edeka has identified opportunities to expand with proximity stores in urban areas, while also looking to grow with its Marktkauf hypermarket banner too.
It also highlighted its agreement with Picnic, which provides an ecommerce solution in North Rhine-Westphalia, while it has also established the Everest joint venture to support both companies’ purchasing of private label products.
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