Rewe Positions Itself for Potential Acquisition of Unimarkt Stores

The Rewe Group is actively preparing to acquire several Unimarkt store locations, signaling a significant development in Austria's grocery retail landscape. The company is considering transforming these outlets primarily into Adeg stores, with some potentially being converted into Penny or Billa branches. While Rewe has not disclosed the exact number of locations it intends to acquire, it has expressed a strong interest in expanding its market presence, particularly in Upper Austria.

Unimarkt has put more than 90 of its stores up for sale and is aiming to finalize transactions by the end of the year. The high concentration within Austria's grocery sector means that the Federal Competition Authority (BWB) will thoroughly assess any potential acquisitions. Rewe has indicated that the transition timeline will depend on several stakeholders involved in the process and that meeting the year-end goal, while ambitious, is feasible but may extend further.

Competing retailers, including Spar, Lidl, and Hofer, have already signaled interest in acquiring Unimarkt locations. However, Upper Austria, which hosts roughly half of all Unimarkt branches, remains a particularly attractive market for Rewe due to its comparatively lower existing market share in the region. Expanding in Upper Austria aligns with Rewe's strategic objective to strengthen its footprint across the country. Currently, the company holds approximately one-third of Austria's grocery market, operating under banners such as Billa, Billa Plus, Penny, and Adeg.

Rewe's preferred strategy involves converting Unimarkt branches mainly into Adeg stores, as this model closely resembles the traditional, locally oriented retail approach favored in rural communities. Nevertheless, the company is also considering transforming some locations into Billa supermarkets or Penny discount stores to diversify its retail offering. Penny, for example, currently operates only 46 stores in Upper Austria, and new acquisitions could significantly enhance its presence. While conversions to Bipa or Billa Plus outlets are possible, they are considered less likely at this stage.

A key consideration for Rewe is the preservation of employment at the affected locations. The company emphasizes its cooperative roots and highlights similarities with Unimarkt's business model, which also relies heavily on independent retailers. Rewe has stated its intention to keep the acquired stores operational, ensuring ongoing grocery supply for local communities, particularly as many municipalities across Austria lack a dedicated grocery retailer.

Rewe is committed to offering existing Unimarkt employees continued job opportunities, underscoring the potential to create additional positions through increased store traffic and growth under the Adeg and Billa brands. The company has also expressed willingness to consider applications from staff at locations not acquired by Rewe or in cases where stores may close as a result of the transition.

This ongoing consolidation within Austria's grocery sector highlights the competitive environment among major supermarket chains as they seek to secure strategic locations and expand their market share. The outcome of these acquisition efforts, subject to regulatory approval and stakeholder negotiations, will have a lasting impact on both the retail landscape and employment opportunities across the affected regions.