For some, it’s impressive; for others, it’s alarming: three supermarket giants dominate 64.8% of the market share in Germany. In 2023, the Edeka Group alone accounted for over a quarter of this with 25.3%.
Aldi: Far from the top players
Despite its strong media presence and price initiatives, Aldi is far from being the market leader. With “only” 11.2% market share, Aldi ranked fourth, far behind the top three.
While Edeka, Rewe, and the Schwarz Group have managed to gain market share since 2009 (despite some fluctuations), Aldi’s share has declined from 12.5% in 2009 to 11.2% in 2023. (Source: manager magazin)
Cooperative and family-run foundations dominate
Edeka and Rewe both originated as cooperatives. Edeka stands for “Einkaufsgenossenschaft der Kolonialwarenhändler im Halleschen Torbezirk zu Berlin,” while Rewe is short for “Revisionsverband der Westkaufgenossenschaften.” Today, Edeka operates as a foundation & Co KG on a cooperative basis, while Rewe’s parent company is Rewe Markt GmbH, whose shares are held by four cooperatives and the independent Rewe Dortmund.
The Schwarz Group and both Aldi divisions (North and South) operate as family-run foundations.
Dual strategies among the top players
Edeka, Rewe, and Schwarz share a dual strategy of operating both discount stores and premium supermarkets. Edeka competes in the low-price segment with Netto, Rewe with Penny, and Schwarz with Lidl alongside Kaufland. Interestingly, Kaufland began its success story in East Germany in 1990 with tent sales.
Beyond supermarkets: Diversified portfolios
The Schwarz Group extends beyond its core supermarket business into waste management and recycling services across Europe, North America, and South America. It also produces its own goods like coffee, baked goods, chocolate, and meat products. Additionally, it plans to launch an IT service provider in collaboration with Google.
Rewe’s portfolio includes well-known travel companies such as DER Touristik and ITS Reisen. Edeka focuses more on financial services through ventures like Edekabank and Edeka Versicherungsdienst.
International differences
There are notable differences in international activity among these players. Aldi operates in Europe, Australia, the USA, and China. Lidl and Penny are present in many European countries, while Kaufland has expanded into Eastern Europe. However, Edeka largely remains within Germany except for its operations in Denmark.
DM and Rossmann: The drugstore duo
In the drugstore sector, DM and Rossmann dominate similarly to Aldi and its competitors in groceries. While they have increased their food offerings, they focus on niche products like organic goods rather than broad categories. Both outperform smaller competitors like Globus or Norma.
Future developments in the supermarket landscape?
The concentration of nearly two-thirds of the market among three companies raises concerns among consumers and regulators alike. The Federal Cartel Office frequently reviews acquisitions to ensure fair competition—most notably during Edeka’s acquisition of Real locations.
Despite this concentration, price wars remain common. Aldi often leads with price cuts, while Rewe (e.g., Barilla, Coca-Cola) and Edeka (e.g., Mars) have occasionally refused manufacturers’ price increases by temporarily removing products from shelves instead of passing costs onto consumers.
