Edeka, according to reports from local trade press publication Lebensmittel Zeitung, is to complete the takeover of 44 Real stores.
Edeka negotiating about acquiring more stores
Edeka will be able to take over the 44 stores immediately but is negotiating about the potential acquisition of a further 28. However, in the interim period, Germany’s Federal Cartel Office, the Bundeskartellamt, has ruled that allowing Edeka to acquire the 28 stores would create significant competition concerns.
The break-up of Real to continue
Since announcing the sale of its Real banner to the SCP Group in June 2020, how the retailer would be broken up has been the subject of much discussion. Kaufland has acquired 92 stores, while Globus has gained a further 24, with negotiations on-going for the rest. In an attempt to maintain competition, especially at a local level, the Bundeskartellamt is requiring SCP to sell some of the Real stores to medium-sized retailers.
Rejuvenating stores will be key to making them competitive
Real suffered from under investment for several years, while its stores were comparatively large versus some of the other retailers in the market. Correcting these issues will require significant investment from the retailers taking over the stores, but the potential to acquire stores in a highly competitive market, where organic expansion is challenging, is too good to pass for Edeka and others. The stores could potentially be incorporated retailers’ wider ecommerce strategies in the medium term, with their size and geographic presence supporting capacity and coverage expansion to enable them to add new shoppers.