Historically monumental investment plan unveiled by Rewe
In a significant move for the Austrian food retail sector, Rewe Austria, one of the country's leading retailers, has announced a major investment plan. The investment, amounting to 1.5 billion euros by 2027, is the largest infrastructure project in Rewe's history in Austria and marks the largest food network investment by a private company in Lower Austria in recent years.
The investment will see modernisation of existing stores and the construction of a new semi-automated dry goods warehouse on the site of Rewe's headquarters in Wiener Neudorf. This move is part of Rewe's parent company's commitment to Austria, reflecting the German owners' confidence in the country as a food location.
Rewe Austria's total turnover in Austria increased by 4.8% to 10.94 billion euros in 2024, while the food business grew by 3.9%. The company employed over 46,900 employees in around 2,500 branches across Austria.
Meanwhile, the food retail sector has seen shifts in market share. Spar increased its market share by 0.1 percentage points to 36.9%, while Rewe lost 0.3 percentage points to 33.6%. This decline, however, does not affect Rewe's strategy, with the paid fine having no impact on its plans and should not be absorbed by employees or customers.
Rewe Austria's retail brands, Billa and Bipa, have also been making strides. Bipa's turnover increased by 5.9% in 2024, and the share of own brands was 32%. Billa, on the other hand, has been experimenting with self-service boxes for several years, with a Billa box offering around 1,000 items currently being tested in Wiener Neudorf and Vösendorf.
Billa also aims to engage in dialogue with the approximately 580 communities in Austria that currently do not have a local retailer. This move is part of Billa's commitment to serving the needs of Austrian consumers and communities.
However, the investment decision and the growth of the food retail sector have attracted attention from regulatory bodies. Online trading giants are significantly less regulated than traditional retailers like Rewe, leading to concerns about fair competition. The OGH decision, which resulted in a record 70 million euro anti-trust fine for Rewe, has negative consequences for the economic location in Austria as legal certainty decreases.
Rewe is preparing an individual complaint to the European Court of Human Rights over this fine, highlighting the importance of legal certainty for businesses operating in Austria. Despite this challenge, Rewe remains committed to its investment calculator in Austria and its role as a leading retailer in the country.
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