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Rewe (stylized as REWE; German pronunciation: [ˈʁeːvə]) is a supermarket chain in Germany and the main brand of Rewe Group headquartered in Cologne.[1] The name originated from an abbreviation of the original name "Revisionsverband der Westkauf-Genossenschaften" (Audit union for Westkauf-Cooperatives). With about 3,300 stores, Rewe is the second largest food retailer in Germany behind EDEKA.

Key Information

In 2011, the company started a delivery service with a test run in Frankfurt am Main, which was gradually expanded to locations throughout Germany. With this approach, Rewe was a pioneer in online grocery delivery within Germany. As of 2015, they have publicised plans for investing more heavily in their online presence.[2]

Their own store brand products are branded "ja!" (German for "yes", discounter price), "REWE Beste Wahl" (German for "best choice, "normal" price), "REWE Feine Welt" (German for "fine world", high price, special items), "REWE Bio" (Organic), "REWE Bio + vegan" (Organic and vegan),[3] "REWE frei von" (German for "free of", allergen-free),[4] "REWE Regional" and "REWE to go".[5]

The Bundesliga club 1. FC Köln is sponsored by Rewe on their jerseys until the end of the 2020–21 season.[6]

References

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from Grokipedia
REWE Group is a German multinational cooperative and one of Europe's leading retail and tourism organizations, headquartered in Cologne and founded in 1927 by 17 purchasing cooperatives to facilitate collective food procurement.[1] With operations spanning Germany and 20 other European countries, it employs approximately 380,000 people and generated total external sales of 96 billion euros in 2024, marking a 4.6% increase from the previous year.[2][3] The group operates more than 12,000 stores, travel agencies, and logistics centers, serving around 12 million customers daily with groceries, consumer goods, DIY products, and holiday services.[1] The REWE Group's retail division, its core business, encompasses national and international food retail under brands such as REWE, PENNY discount stores, BILLA supermarkets, and BIPA drugstores, with over 9,500 outlets focused on fresh produce, packaged goods, and convenience items.[4] In Germany alone, it runs about 6,000 stores through subsidiaries and 1,573 independent retailers, emphasizing quality, sustainability, and digital integration like online shopping and delivery.[5] Beyond food retail, the group includes the toom Baumarkt chain with more than 300 DIY and gardening stores in Germany, the Lekkerland convenience network for on-the-go food, and the DERTOUR Group for tourism, operating travel agencies and tour operators in 16 countries.[4] Sustainability has been integral to REWE Group's mission since 2008, with commitments to reducing emissions, promoting ethical sourcing, and community engagement across its supply chain.[5] In 2024, it achieved record consolidated profits exceeding 1 billion euros for the first time, while planning 16 billion euros in investments through 2028 for real estate, digitalization, and eco-friendly initiatives.[6] As a cooperative owned by its member retailers, REWE Group prioritizes long-term value creation, navigating economic challenges through diversification and innovation in the competitive European market.[1]

History

Founding and early years (1927–1945)

The REWE Group traces its origins to January 1, 1927, when 17 purchasing cooperatives in the Rhineland and Westphalia regions united in Cologne to form the Revisionsverband der Westkaufgenossenschaften, abbreviated as REWE. This cooperative auditing association was established primarily to enable collective procurement of food and other goods, allowing independent retailers to strengthen their position against rising competition and price pressures in the post-inflation German economy. By centralizing purchasing, REWE aimed to achieve economies of scale, improve bargaining power with suppliers, and ensure stable supply chains for its member cooperatives.[1] In the early years, REWE experienced steady growth through organizational enhancements and regional expansion. A key milestone came in 1932 with the introduction of uniform outlet lettering, which standardized branding across affiliated stores and fostered a cohesive identity for the cooperative network. This visual unification helped build customer recognition and loyalty amid economic challenges. By 1935, REWE had expanded its reach by incorporating several purchasing cooperatives from Central Germany, broadening its operational footprint beyond the original Rhineland-Westphalian base and enhancing its collective purchasing capabilities. These developments solidified REWE's role as a major player in Germany's cooperative retail sector.[7] By 1940, REWE had reached its pre-war peak, encompassing 106 cooperatives and approximately 8,000 members, with influence extending from the Rhineland to Central Germany. This growth reflected the cooperative's success in attracting independent retailers seeking mutual support in procurement and auditing services. However, the onset of World War II severely disrupted operations, as wartime restrictions limited supplies, rationing hampered distribution, and bombing campaigns destroyed many facilities and records. By late 1944, REWE had relocated key functions to safer areas like the Sauerland region, but by April 1945, the organization was left effectively at a standstill, with its infrastructure in ruins and business activities halted.[7][8]

Post-war growth (1946–1972)

Following the end of World War II, REWE resumed its operations in late 1945, with full activities restarting by 1946, as the cooperative navigated severe shortages of basic goods across Germany, where the war had destroyed infrastructure and agricultural production, leading to widespread rationing and economic hardship.[9][10] The headquarters, which had been relocated during the war to avoid bombing, returned to Cologne, allowing the organization to begin rebuilding its network of regional cooperatives and member stores amid the divided occupation zones.[9] This period of recovery was marked by efforts to restore supply chains for essential items, as REWE's member retailers struggled to meet consumer demand in a devastated economy.[9] To address ongoing supply challenges and establish a stronger market presence, REWE introduced its first private labels in 1949, including Rewe Dreistern for staple groceries such as flour, salt, and table oil, and Rewe Kronjuwel for products like margarine.[11] These trademarks represented an early step in product standardization and branding, enabling the cooperative to package and distribute basic commodities more efficiently during reconstruction, when imported goods remained scarce and local production was limited.[11] By focusing on everyday essentials, REWE helped stabilize supplies for its affiliated stores, contributing to the gradual normalization of retail operations in western Germany.[9] By the late 1960s, as economic conditions improved, REWE pursued greater efficiency through centralization; in 1968, the regional cooperatives transferred key management functions to the central headquarters in Cologne, culminating in the establishment of REWE-Zentralfinanz eG on July 1 to handle unified financial operations.[9] This restructuring streamlined decision-making and resource allocation across the growing network, reducing redundancies among the independent regional entities and positioning REWE for scaled expansion in the competitive retail sector.[9] The move marked a shift from fragmented local governance to a more coordinated national structure, enhancing the cooperative's ability to negotiate purchases and support member retailers.[9] The culmination of these post-war developments came in 1972, when REWE adopted its current cooperative partnership model through the founding of REWE-Zentral-Aktiengesellschaft (REWE-ZAG) on July 1, integrating the operational business under a joint-stock framework while preserving the cooperative ownership.[9] This model formalized the partnership between the central organization and independent retailers, promoting shared profitability and long-term collaboration without fully dissolving regional autonomy.[9] By balancing centralized control with entrepreneurial incentives, it laid the foundation for sustained growth, reflecting REWE's evolution from wartime survival to a robust retail cooperative.[9]

Expansion and diversification (1973–present)

Following the consolidation of its cooperative structure in 1972, which facilitated joint purchasing and operational synergies among member retailers, the REWE Group pursued aggressive expansion and diversification strategies starting in the early 1970s. This period marked a shift from primarily domestic wholesale operations to building a multinational retail presence, with key moves into discount formats and international markets. By entering new sectors and geographies, REWE transformed from a German-focused cooperative into one of Europe's largest retail groups.[12][13] A pivotal diversification occurred with the introduction of the PENNY discount chain, initially founded in 1973 by the Leibbrand Gruppe but fully integrated into the REWE Group through acquisition in 1989. This move allowed REWE to capture the growing demand for low-price grocery options in Germany and later expand PENNY internationally, establishing over 3,000 stores across Europe by the 2020s and positioning it as a core pillar of the group's discount segment. Complementing this, REWE ventured into the do-it-yourself (DIY) sector by acquiring the toom Baumarkt chain in 2007 from EDEKA, which had originated with its first store opening in 1978; the acquisition bolstered REWE's non-food retail footprint, growing to more than 300 stores focused on home improvement and gardening supplies.[14][15] International growth accelerated in the 1990s, beginning with the acquisition of the Austrian supermarket chain Billa in 1996, which provided REWE with an immediate foothold in Central Europe and expanded to over 1,100 stores in Austria alone. Following the fall of the Iron Curtain, REWE entered Eastern European markets in the early 1990s, starting with operations in Hungary and Poland; notable acquisitions included the Delvita chain in Slovakia in 2005 for €7.7 million, adding 11 stores, and subsequent expansions in the Czech Republic, Romania, and Russia through organic growth and takeovers like the 13 Njam Njam supermarkets in Moscow in 2008. In 2021, REWE sold its Russian operations (Billa Russia) to Lenta LLC.[16][17][18][19][20][21] These efforts established REWE with stores in 10 countries, with a strong emphasis on Central and Eastern Europe where turnover grew by 10% annually in the mid-2000s. Diversification into tourism began with the full acquisition of DER Touristik from Deutsche Bahn in 2000, creating the DERTOUR Group as REWE's travel arm; this was significantly expanded in 2015 through the purchase of Kuoni Group's European tour operations for an undisclosed sum, integrating brands like Apollo and enhancing REWE's presence in leisure travel across 21 countries.[22][23] By 2024, these strategies had culminated in a network of more than 12,000 stores, including supermarkets, discounters, and DIY outlets across 10 countries, underscoring REWE's scale as a pan-European retailer.[5] To sustain this momentum, the group announced a €16 billion investment program in 2024, spanning 2024–2028, targeted at modernizing stores, enhancing digital infrastructure, and expanding real estate and logistics in key markets like Germany and Austria. This commitment reflects ongoing efforts to adapt to evolving consumer preferences and competitive pressures in retail and tourism.[3]

Corporate structure

Cooperative ownership and governance

The REWE Group operates as a Genossenschaft, or cooperative society, under German law, which emphasizes democratic ownership and mutual benefit among members rather than profit maximization for external investors. At its core is REWE Zentral-Aktiengesellschaft eG, the central cooperative entity that coordinates the group's retail, tourism, and service operations across Europe while upholding the principles of collective purchasing and independent entrepreneurship. This structure allows for a hybrid model that integrates 1,573 independent retailers as active members (as of 2024), fostering long-term stability and alignment with cooperative values such as sustainability and community focus.[4][3] Ownership of REWE Zentral-Aktiengesellschaft eG is held exclusively by six owner cooperatives, comprising five regional REWE cooperatives and FÜR SIE Handelsgenossenschaft eG, which together represent the group's foundational purchasing and trading networks. These shareholder cooperatives, rooted in the independent retailer base, ensure that control remains internal and decentralized, with no shares available on public stock markets, thereby shielding the organization from short-term market pressures and external takeovers. This closed ownership model supports strategic investments in areas like supply chain efficiency and member services without the influence of outside capital.[24][25] Governance within this framework is characterized by a dual-board system and participatory mechanisms that promote transparency and member involvement. The Supervisory Board, composed of representatives from the shareholder cooperatives and independent experts, oversees the Management Board's strategic direction, risk management, and compliance, ensuring decisions align with cooperative principles and long-term goals. Key decisions, such as amendments to bylaws or major structural changes, are ratified through annual general assemblies of the member cooperatives, where delegates from the regional entities vote democratically, reinforcing the bottom-up decision-making process inherent to the Genossenschaft model. This governance approach balances centralized coordination with regional autonomy, enabling adaptive responses to market dynamics while maintaining accountability to the membership.[26][24]

Management and leadership

The Management Board of the REWE Group, as the executive body responsible for strategic direction and operations, consists of seven members as of November 2025, overseeing the company's retail, digital, and international activities under the supervision of the Supervisory Board.[27] Lionel Souque has served as Chief Executive Officer since July 2017, with his contract extended by the Supervisory Board until the end of 2028.[28] Under his leadership, the REWE Group has accelerated its digital transformation, including advancements in e-commerce and technology integration across retail operations, while driving international expansion in markets such as Central and Eastern Europe and tourism services.[29][30] Jan Kunath, Deputy Chief Executive Officer since July 2017, is set to leave the board at the end of 2025 after deciding not to extend his contract.[31] His tenure has emphasized operational efficiency, including supply chain management and sustainability initiatives, as well as oversight of retail international and IT strategies.[32] Other key executives include Christoph Eltze, Chief Digital and Technology Officer since July 2022, who leads innovation in digital retail solutions and technological infrastructure.[27] Telerik Schischmanow serves as Chief Financial Officer since July 2022, managing financial strategy and performance.[27] Dr. Daniela Büchel, Chief People and Sustainability Officer since January 2023, handles human resources and sustainability efforts.[27] Recent leadership stability is evident in the extension of contracts for REWE International AG board members, including Marcel Haraszti, Michael Jäger, and Christoph Matschke, through the end of 2025 to support ongoing international operations; in May 2025, a reorganisation was announced, with Haraszti assuming expanded responsibilities for Central and Eastern European full-range business from October 2025, alongside new appointments such as Erich Szuchy as CEO of BILLA Austria from July 2025.[33][34]

Business operations

Retail segments

The REWE Group's retail operations are primarily conducted through its trading division, which encompasses a diverse portfolio of store formats focused on food, consumer goods, and specialized retail. This division emphasizes full-service grocery provision, discount models, and convenience-oriented outlets, with a strong commitment to fresh produce, private-label products, and customer-centric assortments tailored to regional needs.[4] REWE supermarkets form the cornerstone of the group's retail presence in Germany, operating over 3,800 stores that function as full-service grocery retailers. These outlets, managed either as subsidiaries or by independent REWE retailers, offer a broad range of products including fresh fruits, vegetables, bakery items, and private labels such as REWE Beste Wahl, which prioritize quality and sustainability. The format highlights daily fresh goods and an inviting store layout to enhance the shopping experience for families and everyday consumers.[5][35] PENNY, the group's discounter brand established in 1973, operates more than 2,100 stores in Germany, delivering low-price groceries through an efficient, no-frills model. PENNY focuses on essential food items, household products, and promotional deals, with private labels comprising a significant portion of its assortment to maintain affordability. Internationally, PENNY extends this discount approach with over 1,550 outlets, reinforcing REWE's position as a key player in value-oriented retail.[36][37][38] In the convenience segment, REWE to go provides quick-service options with more than 900 locations, primarily at high-traffic sites like petrol stations and train stations, stocking grab-and-go meals, snacks, and beverages with an emphasis on fresh, ready-to-eat items. Complementing this, nahkauf convenience stores, numbering approximately 450 and run by independent retailers, target smaller communities with compact formats of 400 to 800 square meters, offering streamlined selections of groceries, fresh local produce, and daily essentials for families and seniors.[39][40] Beyond food retail, the group operates specialized formats such as BIPA, a health and beauty drugstore chain with around 570 stores in Austria, featuring international brands alongside own-label cosmetics, personal care, and household items in a customer-friendly environment. Additionally, toom Baumarkt serves the DIY sector with more than 300 stores in Germany, providing tools, building materials, gardening supplies, and home improvement products through large-format outlets that support both professional and hobbyist needs.[41][14]

Tourism and other services

The DER Touristik division, now known as the DERTOUR Group since its rebranding in 2024, represents REWE Group's primary engagement in the tourism sector.[42] Acquired by REWE in 2000 from Deutsche Bahn, making it a wholly owned subsidiary, DERTOUR Group has grown into one of Europe's leading travel organizations, ranking as the second-largest tour operator on the continent.[43][44] It operates a diverse portfolio of brands, including DER, ITS, Kuoni, Apollo, and Exim Tours, offering package holidays, long-haul trips, and specialized travel experiences across more than 16 European countries.[45] A key expansion milestone occurred in 2015 when DER Touristik acquired the European tour operating businesses of Kuoni Group, including its operations in Switzerland, the UK, Scandinavia, and Benelux, to strengthen its position in the luxury and premium travel segments.[46] This acquisition integrated established brands like Kuoni and enhanced DERTOUR's network, enabling broader access to high-end destinations and customized itineraries.[46] In September 2025, DERTOUR Group completed the acquisition of Switzerland-based Hotelplan Group, adding further business units including travel agencies and strengthening its European footprint.[47] Today, the group serves millions of travelers annually through a combination of owned and partnered services.[43] Beyond tour operations, DERTOUR Group maintains an extensive network of approximately 2,000 travel agencies across Germany, Great Britain, France, Eastern Europe, and Scandinavia, providing in-person consultation and booking services.[45] These agencies complement digital offerings, with online booking platforms such as dertour.de, its-reisen.de, and kuoni.co.uk allowing customers to access tailored holiday packages, flights, and accommodations directly.[48] The division also manages hotel and resort brands like Aldiana and Sentido, focusing on sustainable and experiential stays in key destinations.[49]

Geographic presence

REWE Group's core market is Germany, where it operates over 8,000 stores across various retail formats, including more than 3,800 REWE supermarkets, approximately 2,123 PENNY discount stores, over 300 toom Baumarkt DIY outlets, and additional nahkauf convenience stores, making it the second-largest food retailer in the country with around 13% market share.[5][36][14][50][51] In Austria, REWE maintains a strong presence in Central Europe through nearly 1,300 BILLA supermarkets and hypermarkets (including BILLA PLUS), employing over 32,000 people and serving as one of the country's leading grocery providers.[52][53] The company extends its operations to additional European countries, including Italy, Romania, the Czech Republic, Hungary, Slovakia, and Poland, with formats such as BILLA, PENNY, and BIPA tailored to local markets; for instance, PENNY operates over 420 stores in Romania and approximately 240 in Hungary as of 2024.[37] Overall, REWE's retail footprint encompasses 12,409 outlets and travel agencies across 21 European countries as of the end of 2024.[5] REWE holds a leading position in Germany's grocery sector and has achieved notable growth in Eastern Europe since the 1990s through strategic acquisitions and organic expansion, particularly in discount and supermarket segments.[54][55]

Financial performance

Overview of revenue and profitability

The REWE Group's total external sales have demonstrated robust long-term growth, rising from €31.22 billion in 2006 to €84.8 billion in 2022, driven primarily by organic expansion, acquisitions, and increasing market penetration in European retail markets. This trajectory underscores the company's resilience and strategic focus on core operations through economic cycles up to 2019. By 2017, annual total external sales had already reached €57.8 billion, reflecting a compound annual growth rate that positioned REWE as one of Europe's leading retail cooperatives.[56][57] Profitability metrics in the pre-2020 period highlight operational efficiency amid competitive pressures. In 2017, the group reported operating income (EBITA) of €491.4 million and net income of €337.8 million, benefiting from cost controls and revenue diversification. These figures represented a stable margin profile, with EBITA margins around 0.85% on total revenue, supporting reinvestments in store networks and supply chain enhancements.[56] The company's balance sheet strength is evident in its asset base and workforce scale. Total assets stood at €19.5 billion in 2017, encompassing extensive real estate holdings, inventory, and international subsidiaries that bolstered operational capacity. By 2019, REWE employed 363,633 people across its operations, enabling service delivery in thousands of stores and contributing to revenue stability through labor-intensive retail models.[58][59] Key financial drivers include the retail segment, which accounted for over 90% of revenue through supermarkets, discount stores, and convenience formats, alongside contributions from tourism services that added diversification. In 2022, for instance, travel and tourism generated €4.94 billion, complementing the dominant retail focus while mitigating sector-specific risks up to 2019. (Total external sales include revenues from approximately 1,600 independent member retailers in Germany.)[57]
MetricValue (Year)Source
Total External Sales€84.8 billion (2022)REWE Group Annual Report 2022
Operating Income (EBITA)€491.4 million (2017)REWE Group GRI Report 2017
Net Income€337.8 million (2017)REWE Group GRI Report 2017
Total Assets€19.5 billion (2017)REWE-Zentralfinanz eG Combined Financial Statements 2018
Employees363,633 (2019)REWE Group Press Release 2019

Recent developments (2020–2025)

In the period from 2020 to 2022, the REWE Group experienced steady total external sales growth amid the challenges of the COVID-19 pandemic, with sales increasing from €75.3 billion in 2020 to €76.5 billion in 2021 and €84.8 billion in 2022, driven by heightened demand in food retail and convenience segments.[60][61][2] This expansion reflected the company's resilience, as essential retail operations benefited from lockdowns, while travel and tourism segments faced temporary setbacks before recovering in 2022.[61] By 2023, total external sales reached €92.3 billion, marking an 8.9% year-over-year increase, supported by strong performance in domestic and international retail amid inflationary pressures.[2] In 2024, the group achieved further growth to €96 billion, a 4.6% rise despite subdued consumer sentiment and economic headwinds in Europe, with EBITA holding steady at €2.0 billion.[3] As part of its strategic response, REWE announced a €16 billion investment program through 2028, targeting store modernization, digitalization, assortment expansion, and logistics enhancements to bolster long-term competitiveness.[3] In the first half of 2025, revenue grew 3.7% year-over-year to €44.0 billion, though EBITDA declined by 4.2% to €2.5 billion due to persistent inflation and cost pressures in energy and supply chains; the company maintained a positive full-year outlook with projected revenue of around €91.5 billion.[62] Employee numbers expanded to approximately 400,000 by mid-2025, up from 390,000 in 2023, reflecting hiring in retail and support functions to support operational scale.[63][2]

Digital initiatives

REWE Digital

REWE Digital GmbH was established in 2013 in Cologne, Germany, as the central IT and digital innovation unit of the REWE Group, focusing on developing technologies to support the retail and tourism operations of one of Europe's largest trade groups.[64][65] As the largest IT organization within the REWE Group, it handles strategic digital initiatives, including software development and system integration, to enhance operational efficiency across the company's diverse brands and services.[66] A key milestone for REWE Digital was its acquisition of commercetools GmbH in 2014, a Munich-based provider of flexible e-commerce software platforms, which bolstered the unit's capabilities in building scalable online solutions for the group. This move positioned REWE Digital at the forefront of the group's digital transformation, enabling the adoption of modern, API-driven technologies to support omnichannel retail strategies.[67] In 2020, REWE Digital launched its first spin-off, OC Fulfillment GmbH, a Cologne-based software company specializing in logistics and order management technologies derived from the unit's innovation hub.[68] This entity, now operating as fulfillmenttools, focuses on distributed order management systems to optimize fulfillment processes for retailers beyond the REWE Group.[69] REWE Digital's scope extends to providing IT infrastructure and support for the REWE Group's activities in 21 European countries, where it manages technologies for over 16,000 stores and serves millions of customers daily.[70] In April 2025, REWE Group announced a partnership with SAP for RISE with SAP, migrating 73 SAP systems to Google Cloud to modernize IT infrastructure and support digital transformation across its operations. Through these efforts, it plays a pivotal role in the broader digital transformation of the REWE Group, as detailed in subsequent sections on e-commerce and technology.[66]

E-commerce and technology

REWE provides online grocery shopping through its dedicated app and website, enabling customers in Germany and Austria to order products for home delivery or in-store pickup. The platform offers a wide selection of fresh produce, household essentials, and specialty items, with delivery options including same-day service in major cities. In Austria, REWE operates a leading online supermarket under the BILLA brand, supporting click-and-collect at over 600 locations as of 2021. This service integrates seamlessly with the REWE loyalty program, allowing users to earn and redeem points during online purchases. Key innovations in REWE's e-commerce include the adoption of AI-driven tools for inventory management and enhanced mobile payment solutions. Machine learning algorithms are employed to forecast demand for perishable goods, optimizing stock levels and reducing waste in online fulfillment centers. Mobile payments are facilitated through REWE Pay, launched in July 2025, which enables customers to complete transactions via QR code scans in the app, combining payment, loyalty point collection, and coupon redemption in a single step.[71] Additionally, click-and-collect services have expanded with the introduction of Pick&Go stores, featuring automated pickup using computer vision technology; by 2024, three new locations were added in Germany, including the largest such store in Düsseldorf.[72] Between 2024 and 2025, enhancements to the REWE app drove significant user growth, with monthly active users increasing from over 6 million to more than 10 million by early 2025, contributing to an overall rise of 7 million monthly customers across REWE channels.[73] These updates emphasize data analytics for personalization, utilizing a privacy-first customer data platform to deliver tailored product recommendations and marketing based on shopping history, while complying with EU data regulations. This focus on personalized experiences has bolstered customer engagement in e-commerce, positioning REWE as a leader in Germany's online grocery sector with projected revenues exceeding €1 billion for rewe.de in 2025.[74]

Sustainability efforts

Environmental commitments

REWE Group has committed to significant reductions in greenhouse gas emissions as part of its sustainability strategy aligned with the Science Based Targets initiative (SBTi). Between 2021 and 2024, the company achieved a 10% reduction in Scope 1 and Scope 2 emissions, dropping from 229,000 metric tons to approximately 206,000 metric tons of CO2 equivalents.[75] Looking ahead, REWE aims for a 42% reduction in these emissions by 2030 relative to the 2021 baseline, focusing on energy efficiency, refrigerant upgrades, and renewable energy adoption.[75] Additionally, the 2024 Progress Report outlines a commitment to net-zero emissions across the entire value chain, including the supply chain, by 2050, with over 450 strategic suppliers already setting SBTi-validated targets covering 87% of product-related emissions.[76] In addressing food waste, REWE and its discount chain PENNY in Germany have pledged a 30% reduction by 2025 and a 50% reduction by 2030, measured against 2019 baselines, through initiatives like surplus food donations and optimized inventory management.[77] These efforts align with global Sustainable Development Goal 12.3 and have already prevented thousands of tons of waste via partnerships with food banks.[78] REWE is advancing store-level sustainability through certifications and resource efficiency measures. By the end of 2025, the company plans to certify over 50 stores—primarily BILLA outlets in Austria—with Green Pass standards, emphasizing energy-efficient construction and operations.[79] Complementing this, REWE targets a 20% reduction in fossil fuel consumption, including district heating, by 2030 compared to 2019 levels, with an 11.9% decrease recorded in 2024 through electrification of logistics and alternative fuels like hydrogen.[76] In procurement, REWE aims to increase the share of plant-based products to 60% of volumes by 2035, supporting a shift toward sustainable protein sources via expanded vegan ranges exceeding 2,700 items in select stores.[80]

Social responsibility

REWE Group's social responsibility initiatives emphasize ethical practices across its supply chains, employee support, and community involvement, aligning with broader commitments to human rights and societal well-being. The company integrates these efforts into its sustainability strategy, which includes dedicated pillars for employees and social commitment.[81] In terms of fair treatment and ethical sourcing, REWE maintains a Supplier Code of Conduct that establishes minimum standards for all suppliers, covering human rights, labor conditions, and environmental protection based on international conventions such as the UN Guiding Principles on Business and Human Rights.[82] This code requires suppliers to implement risk management, provide training on compliance, and report violations, ensuring ethical practices throughout the supply chain.[83] Additionally, REWE commits to the United Nations Sustainable Development Goals (SDGs), particularly those related to zero hunger (SDG 2), decent work and economic growth (SDG 8), and responsible consumption and production (SDG 12), by incorporating these into its operational guidelines and progress reports.[84] The company participates in multi-stakeholder initiatives, such as the German Initiative on Sustainable Cocoa and the Forum for Sustainable Palm Oil, to promote fair trade and traceability in sourcing.[85] REWE supports employee welfare through comprehensive diversity and training programs for its workforce of approximately 390,000 employees across retail and tourism operations.[86] Diversity initiatives foster an inclusive culture by respecting various sexual orientations, cultural backgrounds, and abilities, including employee networks and specialized internships for young migrants to aid integration into professional life.[87] The company offers extensive training via seminars and development programs tailored for career advancement, with a focus on female management executives to promote gender equality.[88] In its tourism division, REWE addresses fair wages through its Guideline on Living Wages and Incomes, which commits to piloting approaches by 2025 to ensure employees and supply chain partners receive living wages, in line with international standards.[89] This includes participation in working groups like the German Retail Trade's initiative on living wages.[90] For community engagement, REWE prioritizes food security and local development by donating surplus food and supporting regional producers. In 2023, REWE and its subsidiary nahkauf donated food worth 2.64 million euros to Tafel Deutschland, Germany's largest food bank network, through targeted campaigns like "Filling Plates Together" to combat poverty and reduce waste.[91] Since 1996, the company has consistently contributed to federal food bank efforts, donating portions of unsold products directly to those in need.[92] REWE also bolsters local agriculture via its REWE Local Partnerships program, which sets binding cooperation parameters for small and medium-sized farms, enabling year-round sustainable production of fruits and vegetables.[93] Regional representatives assist producers with concerns, prioritizing environmentally and socially responsible practices.[94] In 2025, REWE advocated for a national protein strategy in Germany through a position paper that calls for policy reforms to diversify protein sources and strengthen local agriculture. The paper outlines REWE's goal to increase plant-based product sales to 60% of total protein purchases in its German stores by 2035, urging EU and national subsidies to support legume cultivation and resilient food systems.[95] This initiative aligns with broader social aims of promoting healthy, sustainable diets while enhancing economic opportunities for domestic farmers.[96] One of the most significant legal cases involving REWE dates back to 1979, when Rewe-Zentral AG, a key entity within the REWE Group, challenged German regulations prohibiting the importation and sale of French blackcurrant liqueur Cassis de Dijon due to its alcohol content of 15-20%, below the German minimum of 25% for fruit liqueurs.[97] In the landmark European Court of Justice (ECJ) ruling in Case 120/78, Rewe-Zentral AG v Bundesmonopolverwaltung für Branntwein, the Court held that the German rule constituted a measure having equivalent effect to a quantitative restriction on imports, violating Article 30 of the Treaty establishing the European Economic Community (now Article 34 TFEU), unless justified by mandatory requirements such as the effective protection of public health.[97] The ECJ established the principle of mutual recognition, whereby products lawfully produced and marketed in one Member State must be accepted in another unless the importing state can demonstrate an overriding public interest, thereby facilitating the free movement of goods across the EU and setting a precedent for subsequent case law on harmonization and proportionality.[97] This victory for REWE not only allowed the liqueur's sale in Germany but also profoundly shaped EU internal market law.[98] In a more recent development, the Austrian Supreme Cartel Court imposed a record €70 million fine on REWE International AG in January 2025 for gun-jumping, or the illegal implementation of a merger without prior notification to competition authorities.[99] The case stemmed from REWE's 2020 acquisition of a long-term lease on a commercial property in Vienna, which the Federal Competition Authority (FCA) deemed a notifiable concentration under Austrian merger control rules due to its potential impact on competition in the retail sector.[100] Initially fined €1.5 million by the Cartel Court, the penalty was escalated by the Supreme Cartel Court, acting on the FCA's appeal, to reflect the severity of bypassing merger review procedures and to deter similar violations, marking the highest cartel fine in Austrian history.[99] REWE contested the fine as disproportionate, arguing the lease did not constitute a full merger, but the court upheld it to enforce ex-ante merger control and protect market competition.[101] During the 2010s, REWE faced several EU-level competition investigations related to its retail expansions in Austria, particularly concerning potential anti-competitive practices in grocery chains. In 2013, the Austrian Cartel Court, at the request of the FCA, fined REWE €20.8 million for engaging in prohibited resale price maintenance with suppliers, including vertical agreements that fixed retail prices and restricted competition in the food retail market.[102] This probe highlighted concerns over REWE's dominance in Austria following earlier expansions, such as the 2008 EU-approved acquisition of Adeg Österreich Handels AG, which was cleared subject to divestitures of overlapping stores to address competition risks in the wholesale and retail sectors.[103] Additionally, a 2007 European Commission review of the REWE-Adeg transaction was referred back to Austrian authorities after determining it fell below EU merger thresholds but warranted national scrutiny for local market effects.[104] These cases underscored ongoing EU and national efforts to regulate REWE's growth in Central Europe, ensuring compliance with competition rules amid retail consolidation.[105]

Notable controversies

In 2013, REWE was implicated in the widespread European horsemeat scandal, where tests revealed undeclared horse DNA in products labeled as beef, leading the company to recall lasagne and other frozen meals from its stores across Germany.[106] The issue stemmed from contaminated supply chains involving multiple suppliers, prompting REWE and other major retailers to remove affected items amid public concerns over food labeling and safety.[106] In August 2022, REWE faced backlash for stocking canned soups evoking East German Democratic Republic (GDR) nostalgia, such as "NVA-Feldsuppe" and "Schulküchen-Soljanka," which featured communist-era symbols like the hammer, compass, and rye wreath on their labels.[107] The Federal Foundation for the Reappraisal of the SED Dictatorship accused REWE of trivializing the injustices of the GDR regime by commercializing such imagery, sparking a political debate on historical memory and corporate responsibility in post-reunification Germany.[108] Critics argued that the products downplayed the era's food shortages and authoritarianism, while REWE defended them as authentic cultural recreations.[108] Later that year, in November 2022, REWE terminated its long-standing advertising partnership with the German Football Association (DFB) following FIFA's prohibition of the "OneLove" rainbow armbands intended to promote diversity and LGBTQ+ rights during the Qatar World Cup.[109] The decision came after the DFB abandoned the armbands due to FIFA threats of sanctions, with REWE citing a misalignment with its values on inclusion as the reason for ending the sponsorship.[110] This move highlighted tensions between corporate ethics and international sports governance.[109] In 2023, the European Center for Constitutional and Human Rights (ECCHR), along with other NGOs, filed complaints against REWE under Germany's Supply Chain Due Diligence Act, alleging the company failed to address documented human rights violations on Ecuadorian plantations supplying its bananas and pineapples.[111] Reports detailed labor abuses, including excessive working hours, inadequate protective equipment, and retaliation against workers, with REWE accused of ignoring prior warnings from trade unions and investigations.[112] The case underscored ongoing scrutiny of REWE's global supply chain practices.[111]

References

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