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Edeka is making the discount brand disappear - the end of a 40-year tradition

2021-07-24T12:13:49.368Z

Edeka stamps its discount brands. Now it hits a chain with 330 branches and around 6,000 employees.



Edeka stamps its discount brands.

Now it hits a chain with 330 branches and around 6,000 employees.

Minden - Edeka no longer sees a future for its regional discounters.

The reason is that Germany's largest grocery retailer operates a discount brand with Netto, which is expanding rapidly nationwide.

Now it hits the discount chain NP (NP stands for low price), a brand of the regional company Edeka-Minden-Hannover with around 6,000 employees, which is particularly well known in northern Germany.

As the

Lebensmittel Zeitung

reports, its 330 stores are to be transferred to branches of the Edeka or Nah & Gut chains by 2026.

This is the end of a 40-year tradition, the first NP store was opened in Osnabrück in 1973.

Edeka makes the discount brand disappear: double-digit sales growth expected after the changeover

Edeka had already started to rename some NP stores to Edeka.

The ranges have been expanded and the shops have been spruced up.

Double-digit sales increases were achieved as a result.

This success sealed the end for the entire NP chain.

"In the future, NP will disappear", says Bernhard Berger, sales manager for the retail sector in the region, the

Lebensmittel Zeitung

.

Depending on the location, he expects the conversion to be more widely accepted by customers and noticeable growth in sales.

NP is an important part of Edeka-Minden-Hannover.

Last year, the discount chain achieved revenues of around 900 million euros in its stores, which are only 650 square meters on average.

Edeka-Minden-Hannover comes to a total of 10.3 billion euros.

Edeka makes the discount brand disappear: Konsum Leipzig joins in

A third of the NP stores are to be converted into small-scale Edeka stores.

In inner-city locations, the markets have to get by without a service counter.

Edeka markets with so-called “partial service”, ie for sausage and cheese, but not for fresh meat, are to be built in suburban locations and rural areas.

Around two thirds of the NP network are to be continued under Nah & Gut.

Konsum Leipzig will also be part of the changeover.

As the

dpa

reports, the cooperative wants to operate Edeka stores from this year.

This goes back to a cooperation with Edeka Minden-Hannover, said Konsum Leipzig board member Michael Faupel.

Konsum Leipzig wants to take over around ten previous NP stores in southern Saxony-Anhalt with a subsidiary in the next five to six years and operate them under the Edeka brand.

Edeka makes the discount brand disappear: Diska and Treff 3000 already buried

NP is not the first Edeka discount brand to disappear from the market.

Edeka Nordbayern-Sachsen-Thüringen has positioned the Diska format as an Edeka local supplier.

Edeka Südwest discontinued Treff 3000 three years ago, around half of the 160 stores at the time went to Netto.

Edeka Minden-Hannover is the largest of the seven regional companies.

It is active in Lower Saxony, Saxony-Anhalt, Berlin, Brandenburg, Bremen and in the northern part of North Rhine-Westphalia.

The entire Edeka group with its 3,600 independent retailers, over 11,112 stores and around 402,000 employees generated sales of 61.0 billion euros in 2020.

List of rubric lists: © IMAGO / Michael Gstettenbauer

Source: merkur

All news articles on 2021-07-24

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