Rewe plans significantly more stores with self-service checkouts

No self-service counters, no long queues: With SB-cash registers, Supermarket customers can easily scan and pay for their goods themselves. Rewe intends to significantly expand this offer. Normal cash registers will still be available - but in smaller numbers.

Rewe is placing greater emphasis on self-service cash registers in the future. "By the end of the year, we want to increase the number of supermarkets equipped with these from just over 1,000 to 1,800. Then, in nearly half of our stores, there will be SB-cash registers," says Rewe CEO Lionel Souque. These cash registers without personnel ran well and were used by a quarter of customers.

Souque sees a major advantage in the so-called self-checkout systems, which allow customers to scan their items themselves: "The cash registers save time. No one likes long queues at the supermarket." Normal cash registers with cashiers will still be available at Rewe, but their number will be reduced. "It's not about eliminating jobs, but about giving our employees more time for the essentials: customer contact and shelf maintenance," says Souque.

Regarding the consumer mood in Germany, Souque is cautiously optimistic. The consumer mood has improved in his opinion, according to him, since inflation has decreased. "Since inflation has decreased, people are buying more organic products again. I believe this is because they can now afford higher-priced items," he says. In the previous year, when inflation was high, many people had abstained from buying these products.

How do food prices develop?

When asked what makes a good supermarket, Souque replied: "The basics must be there, the products must be top fresh, there needs to be a wide range, the service must be good, the prices must be right, and cleanliness is important." To achieve this, as little waiting in line at the cash register as possible, as well as friendly and competent employees, is necessary. "That sounds simple. But achieving that every day of the week and from early morning to late evening in all the markets in Germany is more difficult than it seems."

Souque does not expect food prices to rise overall. However, price increases for individual products are possible. "You can't plan every harvest. In addition, there are price developments for raw materials on the world market, such as cocoa and orange juice, where raw material prices have risen significantly in recent times," he says. Prices have fallen for other products. A reliable statement about how it will develop overall is therefore difficult. According to Souque, prices at Rewe have not risen in the past, but have even decreased slightly.

Despite this, Souque has observed that consumers have been increasingly turning to the cheaper own brands of the trade when shopping in recent times. "Inflation has led many to start doing this. They have realized that quality and price go well together and have remained loyal to the products," he says. Rewe has expanded its own brand offering. "Our price-cutting brand 'Ja' has grown from 600 to over 1,200 items," says Souque. A typical Rewe market has around 15,000 items in its assortment, about a third of which are own brands. Their sales share has recently grown more strongly than that of branded products, according to Souque.

Do people shop differently in Germany?

Branded articles remain important for the supermarket chain, Rewe, to differentiate themselves from discount stores. Rewe's CEO wishes for more creativity from large food manufacturers in product development. "Branded articles must offer added value. People are not willing to pay double just because of the brand. They expect the product to taste better, be healthier, or offer something new." In his opinion, there is a lack of innovation spirit. Exciting new products often come from small companies or start-ups. "I expect the big corporations with their huge innovation centers to bring a few interesting, new things to the market. Customers are looking forward to it," says Souque.

Souque was born in France. Does the consumption behavior differ there from here? "The people in Germany are very price-sensitive when shopping, more so than in other countries. This is due to the fact that the German market is heavily influenced by discount," he says. "Many Germans have no problem paying three euros for an espresso, but if the cheese costs ten cents more, it becomes a problem." According to Rewe's CEO, there have been changes in Germany in recent years. More and more people are interested in cooking and healthy nutrition, in the content and animal welfare. Many are also willing to pay more for quality and sustainability.

Regarding the Rewe delivery service, Souque can imagine expanding it if it is desired by customers. Rewe delivers food to households in 90 cities and is market leader in this area. Competitors like Picnic are expanding strongly and putting pressure on the company. Making money with food delivery, however, is difficult. Employees would have to take over tasks that the customer usually performs, such as product selection in the market and transportation. "For a delivery, you have a personnel commitment of over 30 minutes. The sales prices, however, are the same as in the market," says Souque.

The price spread for food in Germany is relatively low compared to other countries. This is also reflected in a low sales margin of one to three percent overall. Why does Rewe offer the service despite this? They want to give customers the flexibility to shop as they wish. "We invest in customer relationships and image," says Souque.

The decrease in inflation has caused consumers to buy more organic food, as they can now afford the higher prices.
Rewe's focus on self-service cash registers is also benefiting delivery services, as quicker checkouts allow more time for delivery orders.
Despite the low profit margins, Rewe continues to offer a delivery service to cater to customer demand for flexibility.
The food industry, including retailers like Rewe, must navigate price fluctuations for raw materials, such as cocoa and orange juice, which can impact the price of finished products.