Rewe and the crux of the matter in grocery delivery

Rewe has said goodbye to their slogan “market prices” and are now working on their online prices. What is making itself felt at the moment is that offers and specials are not valid online. Observers are also talking about other price increases (see the comments ont3n). Even if every fourth German orders groceries online now according to Bitkom, online grocery trade is still a tough business.

The problem is that customer and trader points of view differ greatly. Large packaging, toilet paper or even heavy crates of drinks are attractive for delivery from the customer perspective, but at the same time they have an especially low profit margin.

Additionally, up until now customers have ordered targeted offers and so would recuperate on (already unpopular) shipping costs. Through the increased use of the service, it is becoming more and more difficult to deliver products from the store to the customer, as was originally advertised. Logistics centres are now required.

Under these conditions it is difficult to remain both profitable and fair to the customer. As a pioneer under the supermarkets with delivery services, this is now hitting REWE.