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Challenge to Rewe: "Milkman principle" should bring Edeka to the top

2021-05-06T07:12:24.093Z


Edeka wants to become the market leader in online grocery retailing. Picnic's milkman principle is supposed to beat competitor Rewe.


Edeka wants to become the market leader in online grocery retailing.

Picnic's milkman principle is supposed to beat competitor Rewe.

Hamburg - Supermarkets and discounters such as Edeka, Rewe and Aldi are currently benefiting from the corona pandemic.

Many customers cook more at home because restaurants and the like are closed.

This can be seen in Edeka's sales increase in 2020. According to the annual report, the supermarket was able to increase sales by almost ten percent to 61 billion euros.

Now Edeka wants to expand its online trade.

“Of course, online is a relevant business area for the future.

In 2020, online retail in Germany doubled its volume, ”said Markus Mosa, head of Edeka.

So far, Germany has been considered a difficult place for food delivery services.

Due to the high density of branches, the online trade in fresh food had a hard time gaining a foothold in Germany.

With the Corona crisis, however, there was an increased demand for such delivery services.

Amazon also offers a food delivery service with Amazon Fresh.

Edeka and Picnic want to get started with the “milkman principle”

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Edeka works with the food delivery service "Picnic".

© Anja Cord / IMAGO

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Edeka has found a partner to beat its rival Rewe in the online grocery trade.

Edeka acquired shares in the “Picnic” food delivery service.

This delivers products according to the "milkman principle".

"With Picnic we were able to win the best partner," said Mosa.

Food can only be ordered in the app.

If you order by 10 p.m., the groceries will be delivered the next day within a limited period of time.

Delivery is free for orders of at least 35 euros.

Edeka declares war on his rival Rewe

Edeka makes a declaration of war on rival Rewe with his plans.

The Hamburg company pursues a different concept than its competitor.

While Rewe had to set up a nationwide delivery network in recent years and has not yet earned a cent, Edeka is taking a different approach with Picnic.

The group did not build its own network, but acquired stakes in other companies, from which Picnic emerged as the winner.

According to Mosa, the advantage is that Picnic acts differently as a pure player.

"There are different ways of thinking and different cost structures, you pay attention to different key figures," says Mosa.

Companies that specialize exclusively in online trading are referred to as pure players.

The entry into the online trade with picnic is currently still being worked out.

Edeka has a stake in the Dutch company in two ways.

On the one hand, the Hamburg head office holds a stake of around ten percent in the parent company Picnic International BV.

On the other hand, Edeka Rhein-Rhur has a stake of around one third in the subsidiary in Düsseldorf.

But Edeka is considering increasing the share of Picnic.

A Turkish supplier also wants to gain a foothold in Germany and stand up to the big supermarkets.

(jsch)

List of rubric lists: © Uwe Anspach / dpa

Source: merkur

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