5.8 C
Saturday, March 2, 2024
HomeNewsA-BrandsHow REWE Group is Thriving Despite the 2022 Financial Crisis

How REWE Group is Thriving Despite the 2022 Financial Crisis


Related stories

Save and Invest to Win: Sainsbury’s Cuts 1,500 Jobs

The proposals will make things easier, which will help...

Beyond Meat 2024 Strategy: Higher Prices, Deep Cost Reductions

Beyond Meat Inc. said it plans to lift product...

International Rootstocks Symposium to be held at Macfrut 2024

Press ReleaseAs part of the Plant Nursery Area, the...

McBride UK Ups Yearly Profit Outlook

McBride, which produces a wide range of cleaning products...

First All-PE spouted pouch by Amcor and Stonyfield

In a climate of heightened environmental focus, the collaboration...

2023 Annual Press Conference

German food retail: significant investments in customer prices Group REWE:

The total revenue surged by 10.4%, reaching 84.8 billion euros, an increase of 8 billion euros. This impressive growth stands as a testament to REWE Group’s ability to adapt and thrive in challenging economic environments.

While the surge in revenue is a highlight, the company’s commitment to maintaining customer satisfaction is equally noteworthy. It’s important to recognize that, despite rising costs and investments in customer pricing, the operating result (EBITA) experienced a slight dip compared to the previous year. This decision to prioritize customer satisfaction over immediate profit is a testament to the company’s long-term vision.

One of the standout aspects of REWE Group’s performance in 2022 is its remarkable recovery in the travel and tourism sector. Following the tumultuous period of the COVID-19 pandemic, travel and tourism income returned to pre-COVID levels from 2019. In fact, it more than doubled from 2021, eventually breaking even after the pandemic. This rebound underscores the resilience of REWE Group and its adaptability in the face of unforeseen challenges.

In terms of investments, REWE Group continued to demonstrate its commitment to growth and innovation. Despite the difficulties posed by the financial crisis, the company increased its investments by a substantial 2.8 billion euros in 2022. This forward-thinking approach is crucial for staying competitive and meeting the evolving needs of customers.

German supermarket chains REWE and PENNY, known for their food sales:

Their revenue climbed by 6.8% to 37.4 billion euros. This impressive growth highlights the effectiveness of REWE Group’s strategy in its core market.

It’s worth noting that, while results decreased compared to 2021, it was due to deliberate investments made to stabilize customer costs. This approach, prioritizing customer satisfaction over short-term profit, showcases the company’s commitment to its customers and its willingness to make strategic decisions that may temporarily affect financial results.

Cologne. REWE Group’s successful conclusion of the 2022 fiscal year underscores its consistent performance. The company’s steadfast approach and diversified global structure encompassing retail, travel and tourism, and convenience once again paid off, even in the face of the Ukraine conflict’s many effects. This adaptability in the face of geopolitical challenges sets REWE Group apart and underlines the strength of its business model.

Inflation-related factors played a role in the impressive increase in total income, but it’s important to recognize that the operating result (EBITA) experienced a slight decline from the previous year. This decline can be attributed to conscious investments in German food retail to invest in customer prices, rising energy, raw material, labor, and logistics costs, and risk provisions for certain equity investments.

However, what truly sets REWE Group apart is its dedication to long-term growth and customer satisfaction. The robust rebound in travel and tourism after the COVID-19 pandemic, along with the positive global economic trend and the performance of other group divisions, contributed to this stable outcome. REWE Group’s willingness to make strategic investments, even in challenging times, is a testament to its commitment to its customers and its vision for the future.

CEO of REWE Group, Lionel Souque, has consistently delivered on his promise: “In 2022, we did not leave our customers in the lurch.” This commitment to customer satisfaction is not just rhetoric; it’s backed by action. The substantial investment of a three-digit million-dollar amount in Germany alone, aimed at stabilizing customer prices and willingly sacrificing profit, showcases the company’s dedication to its customer base. It’s an approach that stems from the cooperative’s commitment to sustainable business practices and long-term growth rather than being solely profit-driven.

The cooperative model is what enables REWE Group to prioritize customer satisfaction over immediate financial gain. Souque emphasized that they invest up to 99 percent of their earnings in expanding their business segments. This commitment to reinvesting in the company’s growth is a key driver of its continued success.

As an illustration of this long-term focus, Souque cited REWE Group’s wholesale energy trading subsidiary EHA, which, in response to soaring energy prices, mitigated cost increases by nearly 150 million euros in Germany in 2022. This strategic approach to managing costs demonstrates the company’s agility in the face of external challenges.

What truly sets REWE Group apart is its dedication to innovation and modernization. Even during the economic downturn, the company did not reduce or stop making investments. Instead, they increased investments across all business segments to a total volume of 2.8 billion euros. This focus on what customers want for the future—modernization, digitalization, innovation, and sustainability—is a key driver of the company’s ongoing success.

The financial stability of REWE Group is the foundation for its successful organic growth. The CEO of REWE Group stated that, despite three years of economic and socio-political extremes, the international group of companies is in excellent financial health. They have the resources to continue on their current path, given their revenue, results, debt, equity, and investment performance.

In the face of ongoing inflation-driven developments, REWE Group remains vigilant. They understand that, despite their commitment to customer satisfaction, they must manage their investments in the medium and long term to ensure the sustainable financial basis of the business. This responsibility extends not only to their millions of customers across Europe but also to their 384,000 employees, tens of thousands of partners and suppliers, and their owners.

Customers continued to trust REWE retailers during crises, leading to a revenue increase of 6.4%. Under the cooperative management of REWE Group, REWE retailers’ revenue reached 15.9 billion euros. This trust from customers is a testament to the company’s strong relationship with its customer base and its ability to meet their needs during challenging times.

“The independent REWE retailers managed to excel even in an economically challenging year for our customers; they remain the driving force behind REWE’s success,” emphasized the CEO of REWE Group. This recognition of the vital role of independent retailers showcases the company’s cooperative and collaborative approach to business.

REWE Group’s total income grew by 10.4% in the most recent fiscal year, reaching 84.8 billion euros. This growth is a reflection of the company’s ability to adapt to changing market conditions and its commitment to long-term success.

In Germany, the cooperative’s revenue increased by 8.2%, reaching 58.6 billion euros, and abroad, it saw a growth of 15.7% (15.5% when adjusting for exchange rate effects). This international expansion is a testament to the company’s global vision and its ability to tap into international markets effectively.

The workforce expanded by 1.4% to 384,239 employees, with a global workforce growth of 4.7% to approximately 104,000. This expansion underscores the company’s commitment to its employees and its role as a major employer.

The company’s investment activities are particularly noteworthy. Despite the financial crisis, REWE Group increased its investments by a substantial 2.8 billion euros in 2022. This forward-thinking approach is crucial for staying competitive and meeting the evolving needs of customers.

In 2023, REWE Group plans to invest 2.7 billion euros. This commitment to ongoing investment is a key driver of the company’s long-term success.

Equity increased from 8




Latest stories