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Real comes back with a new coat of paint: "A lot depends on Rewe"

2022-06-26T11:37:50.380Z


Real comes back with a new coat of paint: "A lot depends on Rewe" Created: 06/26/2022, 13:30 By: Benjamin Stroka The remaining Real supermarkets will become "my Real". Professor Peter Kenning explains how promising the project is (IDZRW assembly). © Hirschberger/dpa & Screenshot Real & Schmidt-Dom/HHU Düsseldorf Real ventures a new start under the new name "mein Real" with only 63 branches. Su


Real comes back with a new coat of paint: "A lot depends on Rewe"

Created: 06/26/2022, 13:30

By: Benjamin Stroka

The remaining Real supermarkets will become "my Real".

Professor Peter Kenning explains how promising the project is (IDZRW assembly).

© Hirschberger/dpa & Screenshot Real & Schmidt-Dom/HHU Düsseldorf

Real ventures a new start under the new name "mein Real" with only 63 branches.

Supermarket expert Peter Kenning explains how this can work.

Düsseldorf – The Real hypermarket chain as we know it is as good as history.

Real has been broken up for over a year and a half.

For a long time it even looked as if the supermarket chain would end completely.

By the beginning of 2022, 63 branches could still be saved.

They get a new name and a new logo.

“Real” becomes “my real”.

From the well-known slogan "Once there.

Everything inside” becomes the new slogan “Everything I like”.

At the same time, the branches are also to be modernized for the new start.

But is that enough for “mein Real” to be able to hold its own against Edeka, Aldi, Kaufland and Co. in the highly competitive market in Germany?

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Supermarket expert Peter Kenning explains in an interview with IPPEN.MEDIA that "mein Real" could definitely have a chance under certain conditions.

According to Kenning, the decisive factor here is not the current campaign for “mein Real”, but above all the planned cooperation with Rewe.

Because Rewe is to become the new delivery partner of “mein Real” in the future.

“A lot will depend on how successful the cooperation with Rewe is.

If the purchasing and logistics costs for 'mein Real' are better than before and at the same time other costs don't get out of hand, then it could work out,” explains the professor of business administration at Heinrich Heine University in Düsseldorf.

"Mein Real" cooperates with Rewe: But a new start also has disadvantages

A problem for "mein Real": With only 63 locations, it is now one of the smaller players in German retail.

If you have fewer branches, you offer fewer products overall and therefore order fewer goods.

“The purchase price also depends on how much each retailer buys from a particular industrial company.

To put it somewhat simply, the larger the purchase volume, the lower the purchase price,” explains Kenning.

Thus, as a smaller company in this area, “mein Real” initially has a disadvantage compared to the former Real-GmbH.

The supermarket chain is trying to compensate for this disadvantage with the Rewe deal.

It is not known at what prices “mein Real” is to be supplied by Rewe.

"If the conditions are the same as at the Rewe stores, I could imagine that 'mein Real' would be competitive," says Kenning.

Supermarket expert Professor Peter Kenning

Peter Kenning studied business administration at the Westfälische Wilhelms-Universität Münster, where he also obtained his doctorate.

After holding the chair for marketing at Zeppelin University in Friedrichshafen on Lake Constance for several years, Kenning moved to Heinrich Heine University in Düsseldorf in 2013, where he teaches business administration as a professor.

In recent years he has been active in several committees of various federal ministries.

He is currently a member of the Advisory Council for Consumer Questions at the Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection.

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"Mein Real": Branches are to be converted and modernized

However, reducing costs is not the only construction site for “mein Real”.

At the same time, the other branches themselves are to receive a makeover.

Because many Real markets have a somewhat outdated reputation and are getting a bit old overall.

“Mein Real” wants to remodel the branches and make them more modern.

There should be a greater focus on freshness departments.

The "Mein Real" chain wants to become more modern - but is that enough?

However, Kenning suspects that the planned renovations will only play a minor role in the future success of “mein Real”.

“Regular modernizations are important in retail because the shopping atmosphere has an impact on the length of time customers stay in the store.

And if you stay longer, you generally buy more,” explains the supermarket expert.

However: "I don't believe that Real customers shop there primarily because the stores are modern.

And winning new customers with modern shop fittings is also likely to be very difficult.

Due to the high inflation rates, many customers are currently looking more closely at the price than they already have.”

Real: Surprising rescue of the last branches

Real's hypermarkets have been an integral part of German retail for around 30 years.

Once a proud subsidiary of Metro AG, Real now has more than 270 branches nationwide.

But in the 2010s, the chain became increasingly unprofitable.

The Metro group tried to get rid of the now financially troubled subsidiary.

At the beginning of 2020, it was sold to the SCP investor group.

It quickly began with the planned break-up of the supermarket chain.

Since then, over 200 former Real stores have either closed or been taken over by other supermarkets.

At the end of 2021 it still looked like Real would really disappear completely from the German market.

But at the end of January 2022, the turning point suddenly came.

The Frankfurt investor and restructuring expert Sven Tischendorf has secured the remains of Real.

It is now clear: 63 Real branches will remain.

The business will continue under the new name "mein Real" from July 1, 2022.

"My Real": How inflation affects future prospects

The economic development in Germany therefore also plays an important role in a successful future for “mein Real”.

If inflation continues to rise, people will have less and less money at their disposal over the next few months - and accordingly pay more attention to the price when shopping.

According to Kenning, this should ensure that many customers will increasingly shop at cheaper discounters.

"Then it would be difficult for 'mein Real' to assert itself on the market," says the expert.

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Source: merkur

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