TOM 12 2023

Page 7 NEWS December 2023
Battle for market share
with non-food discounters
Atradius expects a wave of consolidation
Stinginess is cool - this consumer
leitmotif seems more
relevant than ever in view of
the inflation rate, high energy
prices and declining propensity
to consume. But not everyone
benefits from this motto.
While it‘s all sunshine and roses
at the food discounters, the competitive
pressure is increasing at
non-food discounters - i.e. suppliers
of inexpensive textiles,
shoes, drugstore products and
household goods. „We expect
a wave of consolidation among
non-food discounters in the medium
term,“ says Frank Liebold,
Country Manager Germany at
international credit insurer Atradius.
Tedi, Kodi, Thomas Philipps,
Woolworth, Pfennigpfeifer and
Co. are facing numerous challenges.
In particular, the increases
caused by inflation, minimum
wage increases and higher personnel
costs are weighing on the
companies. Energy costs and rent
increases are also leading to considerable
additional expenditure.
This is because companies pay
index-linked rents linked to the
consumer price index, and these
have developed well to well
in recent years. „However, as
companies cannot pass on cost
increases to their customers on a
one-to-one basis, this is at the expense
of profitability,“ explains
Frank Liebold. The margins of
non-food discounters have already
fallen from six to ten percent
to just two to four percent. They
are also suffering from declining
footfall in city centers, where
most of their stores are located.
„Discounters that don‘t sell food
are coming under increasing
pressure. And only the large market
players with the corresponding
purchasing power will be
able to survive on the market,“
emphasizes Frank Liebold.
According to Atradius, additional
pressure is being exerted on the
domestic top dogs by internatio-
Photo: Tedi
nal competitors who are forcing
their way onto the German market
- above all the Dutch company
Action and the Polish provider
Pepco. According to market research
institute GfK, Action grew
by 39% in the first six months of
2023, while Tedi, previously the
market leader, only grew by 19%.
Pepco is also pursuing ambitious
goals. The Polish chain for clothing
and household goods wants
to open 2,000 stores in Germany.
Pepco already has around 3000
stores across Europe. As a result,
the battle for customers is intensifying.
„The cake isn‘t getting
any bigger, but has to be spread
across more providers - and that
intensifies the battle for market
share,“ says the head of Atradius
Positive trend at the Schwarzwald-Baar-Center
New anchor tenant and refurbishment in Villingen-Schwenningen
Action Deutschland GmbH
(Action) has opened its doors
in the Schwarzwald-Baar-
Center in Villingen-Schwenningen.
The non-food discounter
has leased and refurbished
an area of almost 1,391 square
meters in the existing property
of Berlinovo Immobilien
Gesellschaft mbH (berlinovo)
on a long-term basis, of which
around 920 square meters is
retail space.
By letting this part of the space,
berlinovo is continuing the positive
trend in the development
of this important commercial
location. VÖLKEL Real Estate
GmbH, which is responsible for
center management, brokered
the lease agreement between
Non-food discounters are currently facing a number of challenges.
New anchor tenants Action and Kaufland have moved into the
Schwarzwald-Baar-Center. Photo: Schwarzwald-Baar-Center
berlinovo and the international
company Action.
Carsten Pohnke, Head of Commercial
Real Estate Management
at berlinovo: „The opening
of the Action store shows
Eurozone trade
balance with higher
surplus
The foreign trade surplus in
the eurozone increased in October.
The trade surplus as the
difference between exports
and imports rose from 8.7
billion euros in the previous
month to 10.9 billion euros
after adjustment, according to
the statistics office Eurostat in
Luxembourg. Analysts had on
average only expected an increase
to ten billion euros.
This development is due to increased
exports and lower imports.
Exports climbed by 0.7
percent, while imports fell by
0.3 percent. Foreign trade in
the 27 countries of the European
Union (EU) developed
similarly to the 20 countries of
the European currency area.
Almost one in four
Germans would pay
for gift tips with data
24% of Germans are willing
to disclose their personal data
in return for help in finding
the perfect Christmas present.
This makes Germans the most
willing to provide information
in Europe, while the Dutch
(18 percent), French (16 percent)
and British (11 percent)
responded more cautiously in
a survey conducted by Zendesk,
according to a press
release. When it comes to
the use of AI, Europeans are
that our concept of establishing
a varied mix of well-known national
and international brands
and integrating local players
is working. The Schwarzwald-
Baar-Center is one of the bestknown
and most popular shopping
centers in the region. This
makes it all the more important
to ensure that it remains an attraction
for local people.“
The opening of the Kaufland
store in September of this year
was already a noticeable stimulating
element. The retailer has
leased a section of around 7100
square meters in the Schwarzwald-Baar-Center
on a longterm
basis and acts as the anchor
tenant of the property. Kaufland
closed the gap in the food supply
that had arisen following the
withdrawal of the hypermarket
chain real in 2021. With the arrival
of Action, another vacant
space has now been put to longterm
use in line with customer
requirements.