- Retailers in the food sector shatter previous records, yet see a decrease in overall revenues.
The German food retail industry smashed its revenue record in 2023, breaking the 200-billion-euro barrier for the first time. The raw sales figures soared by approximately 5% to reach 204.5 billion euros. However, when adjusted for inflation, the actual growth rate took a significant dip, as per data released by the industry research organization EHI. This means the sales growth was slower than the inflation rate. The cost of food increased by more than 12% in 2022, as indicated by the Federal Statistical Office.
Budget supermarkets like Aldi and Lidl experienced the maximum 6.8% surge in raw sales, according to EHI. Expert Marco Atzberger from EHI commented, "In this economically tough period, Germans seem to rely on the price promise of these retailers." The shifting crises have significantly influenced consumer habits and the success of various business models. Despite the price hike, major supermarkets such as Edeka and Rewe managed a 4.1% increase in raw sales in 2023.
Discount outlets make up around 46% of the German food retail market, while traditional supermarket chains like Edeka and Rewe account for about 42%. The remaining portion is divided between self-service stores and small food shops. EHI reported that Germany had approximately 36,858 food stores in 2022, a drop of 5% compared to 2013. This figure includes roughly 16,000 discount stores and over 12,200 supermarkets.
The selection of foodstuffs in budget supermarkets like Aldi and Lidl saw an increase due to their price appeal, contributing to their significant sales surge. Consequently, the overall demand for various foodstuffs in the German food retail market witnessed a notable rise.
