REWE Group is a major German supermarket chain and retail company headquartered in Cologne, Germany. It operates over 15,000 stores across Europe, including supermarkets, convenience stores, and online retail. REWE Group has annual sales of over €75 billion and employs over 380,000 people.
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The current CEO of REWE Group is Lionel Souque. He took over as CEO in 2017, after previously serving as the company’s chief operating officer. Some quick facts about Lionel Souque:
- Nationality: French
- Age: 57 years old (as of 2023)
- Education: Graduate of ESCP Business School in Paris
- Career: Worked at Auchan and McKinsey & Company before joining REWE in 2007
- CEO Since: July 1, 2017
Souque has overseen REWE Group’s strategy of expanding its presence across Europe, including acquiring stores from other chains. He has focused on improving REWE’s e-commerce operations and integrating physical and digital retail. Under his leadership, REWE Group continues to be one of the largest and most successful supermarket operators in Germany and Europe.
History and Overview of REWE Group
REWE Group has a long history tracing back to the 1920s in Cologne, Germany. Here is an overview of the company’s history and development over the decades:
- 1927 – The first REWE retail store opens in Cologne, founded by 17 retailers
- 1948 – REWE formally establishes as a cooperative grocery chain
- 1973 – REWE begins expanding outside Germany by acquiring stores in Austria
- 1993 – REWE merges with German retailer divi, expanding its store footprint
- 2003 – Takeover of LIDL completed, making REWE Group one of Europe’s largest retailers
- 2008 – REWE acquires Plus supermarket stores in Germany from Tengelmann Group
- 2013 – PENNY stores in Europe integrated into REWE Group
- 2016 – REWE Group surpasses €50 billion in annual sales for the first time
Today, REWE Group operates grocery stores, convenience stores, DIY stores, furniture centres, and online shops across Europe. Its largest retail chains include REWE, PENNY, BILLA, MERKUR, and LIDL. REWE Group continues to focus on growth into new European markets.
REWE Group’s Operational Structure and Leadership
REWE Group has a complex operational structure with multiple retail chains and brands across Europe. Here is an overview of REWE Group’s key divisions and leaders:
Division | Description | CEO/Leader |
---|---|---|
REWE National | REWE supermarkets in Germany | Philipp Humbert |
PENNY National | PENNY discount supermarkets in Germany | Stefan Genth |
LIDL National | LIDL discount supermarkets in Germany | Matthias Oppitz |
REWE International | REWE and BILLA supermarkets in Austria, Italy, Eastern Europe | Marcel Haraszti |
LIDL International | LIDL stores outside Germany | Ignazio Paternò |
The CEOs of each national and international division report directly to the overall REWE Group CEO Lionel Souque. This allows each retail chain to operate with a good level of autonomy while still coordinating as part of the larger REWE Group.
Financial Performance and Market Share
REWE Group has consistently increased its revenues and market share over the past decade. Here are some key financial highlights for REWE Group:
- Total group sales in 2022: €76.5 billion, up 6.9% over 2021
- EBIT (earnings before interest and taxes) in 2022: €1.5 billion
- Over 380,000 employees worldwide as of 2022
- Market share of German grocery retail sector: 22.5% as of 2022
REWE Group has achieved strong growth both in Germany and internationally. In its home German market, REWE and PENNY continue to gain grocery market share. Internationally, REWE Group sales topped €26 billion in 2022, led by its BILLA and LIDL store chains in Austria, Italy, and Eastern Europe.
REWE Group’s Business Strategy and Initiatives
Under CEO Lionel Souque, REWE Group is pursuing a “Strategy 2030” plan focused on the following key priorities:
- Omnichannel retail – Integrating and growing e-commerce along with physical stores
- Sustainability – Increasing organic, environmentally friendly products
- Technology – Using data analytics, AI, and automation to improve operations
- Own brands – Expanding REWE, PENNY, and LIDL private label product ranges
- New markets – Targeted expansion into convenience and discount segments
REWE is investing heavily in improving its e-commerce and online grocery operations, which grew 76% in 2022. It is also trialing more technology in stores, including electronic shelf labels and mobile checkout. Additionally, REWE Group aims to be climate neutral by 2040.
International Expansion Efforts
REWE International is planning continued expansion of its BILLA and PENNY grocery chains into new Eastern European markets. In 2022, REWE Group made its first entry into the Romanian market by acquiring local retailer Lento. More store acquisitions across Eastern Europe are expected in upcoming years.
LIDL has also identified the United States as a key growth market. It currently operates over 170 stores in the Eastern U.S. and plans to continue expanding its American footprint in coming years.
Conclusion
In summary, REWE Group CEO Lionel Souque has overseen impressive growth and solid financial results since taking over leadership of this German retail giant in 2017. He has guided REWE’s strategy of omnichannel retail, sustainability, technology adoption, own brands, and selective international expansion. With over 15,000 stores across Europe, REWE Group continues to be one of the continent’s largest, most diversified and successful supermarket operators under Souque’s leadership.