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Study: Food retailers in Germany are not innovative

enough (PHOTO)

Dusseldorf (ots) – International competition and technology companies threaten the

fixed grocery store.

High costs, low margins, little innovation: “The already low margin

Food retail in Germany, Austria and Switzerland is in

poor position in international innovation competition,” says Dr. Mirko

Warschun, commercial expert and partner in international management consulting

Kearney. “Scaling costs and aggressive growth strategies by

Online retailers and tech marketers can do almost nothing

oppose While the international competition in vanguard

Invest in technologies and innovations with significant customer benefits

brings maturity to the market, the majority of German-speaking retailers remain within

Areas that add nothing to their shopping experience.”

Kearney Retail Specialists has grocery retail around the world

the pending patents are examined in detail and related to each other.

The analysis shows that retailers in Germany, despite the rich

Innovation history (eg shopping carts and product displays) in

have produced fewer innovations than in the last five years

international competition and pure online players. So Walmart has 92 percent

has registered its more than 2,000 patents since 2016, while from Aldi, REWE

and Edeka only a good 25 percent of the 158 patents in the last five years

is omitted. Only LIDL shows more innovation awareness and has 60 percent

its patents pending as of 2016. However: Most of their patents come from

in German food retailing not by cutting-edge technologies, but by

traditional areas such as product displays, cash register systems and

food preparation Meanwhile, international retailers are focusing

and internet-only providers on blockchain, the internet of things, autonomous and

Drone delivery as well as virtual shopping.

Most of the innovations of German-speaking dealers are gradual,

imitative and non-differentiable, meaning they don’t do much

Contribute to the retailers brand. Instead, the new ones offer

Market participants such as technology start-ups disrupt innovations by a

direct experience result for customers. For example

they offer gorillas and agile food deliveries within ten

minutes and meal kit provider HelloFresh has the healthy diet

reinvented at home, as well as Eat Simple Food and Too Good To Go. But

There are also exceptions: With the invention of Easy Shopper, Edeka has the customer

Travel was improved and staff costs were reduced. Customers have to deal with it

no longer queue at the checkout and their goods from the shopping cart to

Tape it and then put it in the bag.

The M&A activities of established retailers in DACH also differ

they differ significantly from their international counterparts and purely online providers.

While international retailers such as Walmart and Amazon focus on innovation

Tech companies rallied, DACH traders bought traditional,

static competition. For example, Ocado and Alibaba have in companies

average age of five or 14 years. On the other hand, Eleven

and Aldi invests in companies that are up to 16 times older. in the

On average, the companies acquired by Edeka were 79 years old

companies bought by Aldi were 60 years old. About

target area, M&A activities in the DACH retail sector are concentrated

Central Europe, while international players focus on technology hubs in Asia

targeted, particularly in India, China and even Australia. DACH investments

in tech companies it was the exception to the rule, disruptive

Therefore, innovations were not ensured. All in all, it seemed

Investment strategies to consolidate the status quo, but no further growth either

to strive for development. The last three years

DACH Grocers completed approximately 107 M&A transactions, most

with other permanent representatives. The big ones in Germany have

a total of almost 40 acquisitions made with an average age

Target company of almost 50 years. EDEKA was particularly liked when she was twelve

that were analyzed the acquired companies had an average age

of 79 years. As a result, only a few innovative technology companies were

Targeted, like REWE with the co-investment in Fink.

“The entry of technology companies into the market poses new risks

established retailers, only with disruptive innovations

make a difference to the shopping experience,” says Adrian

Kirste, partner at international management consultancy Kearney. Traditional

Retailers run the risk of losing their loyal customers to the new offer

to lose. “Grocers in the ADF must act now and innovate

to be when they are not relevant entrants to the bold and creative

he wants to lose the competition.”

About Kearney

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Press Contact:

Can Erdal

DACH Digital Marketing Manager

AT Kearney GmbH

house of three slices1

40211 Dusseldorf

Phone: +49 175 2659471

mailto:can.erdal@kearney.com

Further material: http://presseportal.de/pm/15196/5266186

OTS: Kearney

AXC0114 2022-07-06/10:02

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