2024-04-10 10:16:48
Sluggish consumption and high food prices will also have a negative impact on business at the Rewe Group in 2023. Nevertheless, things went better than the previous year – especially in one area.
The retail and tourism group Rewe increased its profits significantly, primarily due to the positive development of its travel division. Last year, the retail giant recorded an annual profit of 736.2 million euros, an increase of 46 percent, as the company announced. Independent Rewe retailers and associated companies are not taken into account here.
The Rewe Group’s total sales rose by almost 9 percent to 92.3 billion euros, helped by high inflation. The group’s tourism division, which includes brands such as Dertour, ITS, Clevertours and Jahn-Reisen, saw particularly strong growth. Sales here climbed by almost 25 percent to 7.2 billion euros.
“On the one hand, the pent-up demand for travel continues after the pandemic. On the other hand, many people have made the decision to treat themselves to their vacation and, if necessary, prefer to save elsewhere,” said Rewe boss Lionel Souque.
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Uncertainty among consumers
However, in its core business, the food trade, the company will once again clearly feel the uncertainty and thriftiness of consumers in 2023. The high price sensitivity has influenced purchasing behavior, said Souque. People increasingly turned to offers, own brands and entry-level products. This had a negative impact on Rewe and Penny’s business.
Sales in Germany rose by 7.8 percent to 40.4 billion euros. The growth was therefore significantly lower than the price increases. Food inflation determined by the Federal Statistical Office was 12.4 percent in 2023. Recently, price increases have weakened significantly again. “There is currently no more inflation in our product ranges across all of our markets; weighted prices are actually falling,” said CEO Souque.