History-making investment program unveiled by Rewe
Rewe Austria, the parent company of Billa, has announced a significant investment of 1.5 billion euros in the modernization of stores and the construction of a new semi-automated warehouse in Austria by 2027. This move demonstrates the confidence of the German owners in the Austrian location, according to Rewe Austria CEO, Marcel Haraszti.
Despite a record cartel fine of 70 million euros, Haraszti stated that this did not influence the investment decision. The CEO emphasized the focus on "sustainable and qualitative growth," asserting that "market shares can make you poor, for example if you buy them with promotions."
Billa's online sales increased by 11 percent in 2024, reaching 114 million euros. However, the company discontinued its nationwide home delivery service outside the Vienna metropolitan area for economic reasons in December 2023. Instead, Billa has only offered its own delivery service in Vienna and parts of Lower Austria and Burgenland since then.
The investment will also include the construction of a new dry goods warehouse, with the construction start planned for 2026 and completion scheduled for 2030. The construction will utilize existing built-up areas of Rewe.
In addition to modernizing stores and expanding delivery services, Billa aims to engage in dialogue with the approximately 580 Austrian municipalities that currently have no local retailer. The company also plans to increase its product range, with an increase of around 2.1 percent observed in 2024, despite inflation measured at 2.9 percent by Austria's Statistics Austria in the previous year.
It is worth noting that Rewe lost its market leadership in the Austrian food retail market in 2020 and has since seen the gap widen. By 2030, around 200 Billa supermarkets will be run by independent retailers, an initiative that has no impact on Adeg retailers.
Rewe is currently preparing an individual complaint to the European Court of Human Rights (EGMR) due to several rights violations it feels have occurred. The companies involved in discussions about installing Billa-Boxes in the 580 Austrian municipalities currently without a local supply point include REWE Austria, under which Billa operates. No other companies are specifically named in the available information.
In 2024, Spar increased its market share in the Austrian food retail market by 0.1 percentage points to 36.9 percent, while Rewe's market share decreased by 0.3 percentage points to 33.6 percent. The share of promotions at Billa and Billa Plus was around 40 percent, and the share of own brands was 32 percent.
Rewe increased its total turnover in Austria in the previous year by 4.8 percent to 10.94 billion euros. The investment of 600 million euros for the new logistics center is the largest infrastructure project in Rewe's history in Austria.
This investment is a clear indication of Rewe's commitment to the Austrian market and its ambition to regain its position as a market leader in the food retail sector.
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