Rewe and Edeka lead German grocery market competition

Rewe and Edeka stand as the two dominant forces in the German food retail sector, though they operate under distinct organizational structures. While both utilize cooperative models, Edeka functions as a cooperative association where independent merchants significantly influence local operations. In contrast, the Rewe Group maintains a more centrally managed structure.

In terms of market dominance, Edeka holds the largest share of the German food retail market at approximately 14 percent. Rewe follows closely with a market share of roughly 12.1 percent. The Rewe Group’s extensive portfolio includes over 3,300 supermarkets, the discounter Penny, and the travel company DER Touristik.

The history of these giants reveals different origins: Edeka traces its roots back to an 1898 Berlin-based purchasing cooperative, while Rewe was established in 1927 through the merger of several West German cooperatives. Despite their massive scale, both companies have faced historical challenges, including Rewe’s involvement in the 2013 horsemeat scandal, where mislabeled meat was found in various processed products across the industry.