German retailer Rewe Group, which owns Penny Market and XXL Mega Discount networks, makes a new strategic move on the local market after at the end of last year sold the Billa supermarkets to Carrefour.
Thus, the 8 XXL Mega Discount stores will be shut down as of December 31, 2016, according to market sources, after XXL Mega Discount brand was turned in 2007 in Penny Market XXL, and in 2013 the store network was re-launched under XXL Mega Discount brand.
Two of these, from Sibiu and Galati, will be sold to competitors, Lidl being one of them, and the other six will be reorganized and rebranded in Penny Market, covering a larger sales area, the same sources said.
According to company’s officials, the decision was taken in order to help expand the Penny Market network.
“We can mention three main reasons: increasing Penny brand’s visibility, increasing company’s efficiency, supporting the latest trends in consumer behavior – larger stores and decreasing the difference between two concepts: discounter and supermarket”, officials explained.
Thus, Penny Market network could get to over 200 units in the first part of next year, according to the retailer’s business plan for this year-end. Now Rewe is operating 180 units under the Penny Market banner.
XXL Mega Discount stores have an average area of 2,500 sq m and 7,500 products in the offer.
Rewe has also sold in 2010 the Selgros cash & carry stores network in an international transaction.