REWE’s 2025 results: a snapshot of European retail

As one of Europe’s leading retailers with operations in 13 countries, the latest results from the REWE Group paint a clear picture of the grocery retail market across Europe. With stores across hypermarkets and supermarkets, convenience, discount and drugstores, as well as operations in the online channel, the retailer acts as a bellwether for European grocery retail.  

The Group’s growth in 2025 was extremely fragmented. Across the entire portfolio, including its tourism and non-food offering, the Group reached the milestone of €100bn in turnover. Within the key retailing segment, however, the picture shows clear peaks and troughs, driven by geography, channel, ownership model and competitive intensity. 

Europe split down the middle 

The first clear divide is geographical, between Western and Central and Eastern Europe. Key markets Germany and Austria saw muted growth, with increased promotional pressures and fierce competition from competitors. This is true for all channels and banners, which saw modest and below-market growth.  

Central and Eastern Europe experienced more positive performance, with expansion in particular helping fuel volume growth. Hungary, Romania, and the Czech Republic experienced the most increase, with positive momentum across channels and banners. Despite making up a small part of the REWE Group’s international portfolio, they are steadily becoming key pillars of expansion and investment. 

Channel dynamics shifting 

For a long time, discount has been pulling ahead of other physical channels in Europe, enjoying the highest growth rates and gaining share. While this remains true for Central and Eastern Europe, the picture is different in the West. Germany saw only 0.7% growth in revenue for Penny, while in Austria the banner had no growth at all. In Italy, it has been struggling and has been closing unprofitable stores to strengthen its foothold in the market.  

Supermarkets and hypermarkets are the largest contributors to revenue for the Group, and will remain so for the foreseeable future. However, growth is slowing amid continued competitive pressure, as well as wage inflation and rising costs driven by ongoing economic volatility. Investment is being made across value to help combat strong performances in the discount channel in the markets where it competes. 

Convenience is a smaller part of the operation overall, but particular investment is being made in Germany through Lekkerland. Travel hubs are being targeted with REWE To Go stores, some of which are autonomous for added shopper convenience.  

Expansion saw REWE enter Romania with its drugstore banner BIPA, which is seeing positive success and reached a milestone €1bn in total revenue last year. Although growth has slowed in Austria, it remains above market, while operations in Croatia continue to grow above double digits.  

Online remains a complex channel for the Group, and for the region overall. Home delivery was abandoned in Austria, in favour of click and collect and a broader partnership with quick-commerce operator Foodora (including the launch of Vienna’s first dark store). In Germany, investment is being made in several methods for e-commerce, including autonomous robots and drive-throughs, in addition to continuous expansion of click and collect and home delivery. 

Independent retailers a driving force 

Another key differentiator of performance to emerge from the latest results is that independently run stores are growing significantly faster than their centrally run counterparts. In Germany, 1,620 independent retailers saw growth of 7.2%, reaching a milestone €20bn in overall revenue. The growth is supported by REWE’s privatisation strategy, as it is prioritising independent operation over broader company-owned network growth. 

Austria is seeing similar changes, albeit on a smaller scale. While the model has long existed for the ADEG banner, it is only recently that REWE started offering independent retailers the opportunity to manage BILLA stores. With a network of 40 in 2025, REWE has set itself a target of 200 by 2030, hoping to replicate the success it is seeing in Germany through this model. 

Learn more about the advantages of franchising in European grocery. 

What this means for suppliers: 

• There is no single growth story across the region. Central and Eastern Europe markets should be treated as medium- to long-term growth bets, where store openings and rising shopper demand can support volume growth. 

• In markets where growth is more muted, suppliers need sharper value, promotion and category arguments to protect space and relevance. Demonstrate how products can support both value perception and profitability. 

• Independent retailers are a driving factor of growth; suppliers should consider more flexible, locally relevant activation plans. This presents an opportunity for store-owner level relationships for challenger brands where there is ranging autonomy. 

• Tailor your plans to the different channels and avoid a one-size-fits-all approach. Build banner-specific recommendations around range, pack size, price and promotional mechanics. 

• Prepare for more fragmented online models and support convenience and travel-hub missions as these channels expand across the region. 

Want to find out more?

Read the latest version of the REWE Strategic Outlook, coming to Retail Analysis on 3 August.