PENNY International sees strong growth
As a country-specific discounter in Italy, Austria, Hungary, the Czech Republic and Romania, PENNY International continued its strong growth in 2024 and achieved an increase in sales in each of the countries. PENNY Romania was once again the growth leader with an increase of 14.9 per cent, followed by PENNY Czech Republic at 9.7 per cent, PENNY Hungary at 5.8 per cent, PENNY Austria at 3.5 per cent and PENNY Italy at 1.4 per cent (all figures adjusted for exchange rate effects).
“We had a successful year. Our sales rose by 7.8 per cent to 9.34 billion euros, which shows that our assortment meets our customers’ needs. At the same time, we have seen consumers becoming more financially cautious. They are more likely to choose private label products and are particularly keen to buy domestic products. The trend highlights the need to continue offering high-quality local alternatives that pair quality with good value for money,” explained Michael Jäger, member of the Executive Board at REWE International AG. The number of employees rose by 1,847 to 29,866. In addition, the total number of PENNY International stores rose by 78 to a total of 1,868, marking a sustained investment drive. In Romania alone, 40 new branches opened their doors to the public last year.
Supermarkets CEE (BILLA, IKI) invest in new concepts and new stores
There was also sales growth in all supermarkets in CEE (BILLA in Bulgaria, Slovakia and the Czech Republic as well as IKI in Lithuania). BILLA Bulgaria recorded the strongest sales growth at 6.1 per cent, followed by BILLA Czech Republic at 5.6 per cent. IKI in Lithuania was able to retain its second place in the market, achieving a 5.1 per cent increase in sales. BILLA Slovakia increased sales by 2.4 per cent in a difficult market environment. Sales for the entire CEE supermarket segment rose to 4.58 billion euros, amounting to an increase of 4.8 per cent.
“Despite the difficult economic environment with significant deflation in Bulgaria, the Czech Republic, Slovakia and Lithuania, we managed to post positive business results in 2024. Amid changing consumer behaviour, we succeeded in further strengthening our market position in each of the four countries. In 2024, consumers in these countries were particularly anxious about the rising cost of living and their own financial situation. We were able to meet our customers’ needs by introducing new local private labels and offering compelling customer loyalty programs and new store concepts. Continued investments in our store network and logistics are also set to shape the year ahead,” commented Espen B. Larsen, Member of the Executive Board of REWE International AG. The store network was also expanded by 33 to a total of 860 locations in 2024, while the number of employees rose to 22,091 last year.
Business units with full product range in Austria posts 5.1 per cent sales growth
The past financial year for the business units with a full product range Austria (BILLA, BILLA PLUS, BIPA, including BIPA Croatia, Wholesale and Travel and Tourism) was a very positive one with sales growth of 5.1 per cent to 9.90 billion euros. “The positive development of our private labels across all price categories and key areas, such as organic or green products, highlights our clear strategy to offer high-quality products at affordable prices, which applies to the food retail sector just as much as to the drug store sector. In addition to BIPA Austria, business in Croatia, which is managed from Austria, deserves special mention. There, 938 employees at 141 locations helped achieve growth of 17.2 per cent,” says Marcel Haraszti, Member of the Executive Board of REWE International AG, clearly pleased.
One business segment that is becoming ever more important is that of BILLA and ADEG merchants. The BILLA merchants are independent pioneers who have established themselves over a period of just under three years and saw their numbers grow to 23 last year. ADEG, in turn, is celebrating its 130th anniversary this year, which provides striking proof of how enduring and sustainable the merchant business can be. Every independent merchant stands for outstanding customer focus and strong regional ties, proving every day how entrepreneurial spirit and commitment can pave the way to success.
More than 1 billion euros invested
2024 marked a year of investments: we invested 1 billion euros in modernising our stores (now 4,654 locations). We also worked hard on expanding our private label segments. “Last year, we added 1,450 people to our workforce,” said Kunath. “I would like to thank all of our 95,156 colleagues in the stores and corporate units in Austria, Italy, Slovakia, the Czech Republic, Hungary, Croatia, Romania and Lithuania, who strive to ensure our customers’ satisfaction every day.”