Rewe Group increases investments for 2018 | Progresiv

Rewe Group wants to accelerate its efforts to modernise its store network and logistics; and at the same time invest in digitisation and training for its employees. Therefore, the Cologne-based retailer intends to increase its investments to more than 2 billion euros in 2018, following 1.7 billion euros for 2017, its incoming CEO Lionel Souque told local newspaper Kölner Stadt-Anzeiger.

This, together with the integration of Coop (Germany) and a batch of Kaiser’s-Tengelmann stores, will have a negative impact on profits, Souque added. While standing at around 500 million euros in previous years, “this year will be a bit worse and next year won’t be much better either”, he said. The current business year is all going well, he added, saying that sales are up 5% and 3% respectively for its supermarkets and discount banner Penny.

“Amazon is going to affect all industries,” he added, including banking and insurance. This is why Rewe Group continues to invest in expanding its e-commerce operations. Digital innovations are not on the agenda, the focus is more on operational excellence in order to achieve full satisfaction among shoppers, both instore and online. (www.retailytics.com)