People remain reserved at the checkout, but their desire to travel has been awakened again. This gave the retail and tourism group Rewe a significant jump in profits last year.
The retail giant Rewe made significantly more profit last year. The company announced that its annual profit rose by 46 percent to 736.2 million euros. Independent Rewe dealers and associated companies are not taken into account.
The Rewe Group’s total sales rose by almost nine percent to 92.3 billion euros. Sales grew particularly strongly in the tourism division, which includes brands such as Dertour, ITS, Clevertours and Jahn-Reisen. Tourism revenue climbed by almost 25 percent to 7.2 billion euros.
“On the one hand, the pent-up demand for travel continues after the pandemic. On the other hand, many people have made the decision to treat themselves to their vacation and, if necessary, prefer to save elsewhere,” said Rewe boss Lionel Souque. During the corona pandemic, sales in the travel division plummeted. In 2022 it returned to pre-pandemic levels.
Consumers bought adjusted for inflation fewer
In its core business, the food trade, Rewe continued to feel the uncertainty and thriftiness of consumers. The high price sensitivity has influenced purchasing behavior, said Souque. People increasingly turned to offers, own brands and entry-level products. This had a negative impact on Rewe and Penny’s business.
Sales in the markets in Germany rose by 7.8 percent to 40.4 billion euros. However, growth was once again significantly lower than price increases. Food inflation determined by the Federal Statistical Office was 12.4 percent last year. In 2022 it was already 13.4 percent.
Food prices most recently below the previous year
Despite the low margins in retail, Rewe had to invest a three-digit million sum in the supermarkets and the Penny discounter in order to keep the price jumps for customers within limits, said Rewe boss Souque.
Recently, however, food price increases have weakened. In March they slipped below the level of the same month of the previous year for the first time since February 2015. Food prices were 0.7 percent lower than a year ago and thus well below the inflation rate of 2.2 percent. Souque even gave the all-clear for 2024: “There is currently no more inflation in our product ranges – looking at all our markets – and weighted prices are even falling.”