Germany is a major export market for products from all over the world. It is home to some of the largest and most established supermarkets and drugstores in Europe, and these stores are an attractive option for businesses seeking to enter this market.
One of the biggest players in the German retail market is Metro AG. This company sells items such as food, beverages, electronics, and clothing to customers across Germany.
The two main supermarket chains in Germany are Aldi and Lidl, which together account for more than half of all grocery sales in the country. Other notable names include Kaufland, Aldi Nord & Süd, Edeka Group, Lidl and Rewe Group. Each offers its own unique product selection while providing quality customer service.
On the drugstore side, DM is the clear market leader with more than 1.4 thousand locations and about 40k employees in Germany followed by Rossmann with more than 2 thousand shops across the nation. Both companies provide customers with a broad range of health-related products ranging from cosmetics via pharmacy items and dedicated assortments for babies to healthy food.
Germany: where the discounters started
German discounters are a unique type of supermarket founded in Germany. These supermarkets offer a a comparatively narrow range of products, a high proportion of private labels and low prices.
The biggest difference between German discounters and other supermarkets is the way there assortment is constructed, and their products are priced. They carry about 2.5 – 3.5k different items, ranging from fast-moving food to a very dense near- and non-food assortment, while super- and hypermarkets will carry in average about 12k items.
While most other supermarkets offer discounts or coupons to their customers, German discounters rely on bulk purchasing to bring down prices. This allows them to purchase items in large quantities from suppliers, meaning they can pass these savings onto their customers.
Another key difference is that German discounters typically do not offer brand names or special offers like loyalty programs; instead they focus on offering simple low-cost alternatives that often come without any packaging whatsoever. Furthermore, these stores typically have fewer staff members than larger supermarket chains, making it easier for customers to quickly locate the items they need.
The German drugstore market
German drugstore market is mainly divided into two major players – DM and Rossmann. Both of them offer a variety of convenience goods, cosmetics, food as well as household items at a reasonable price. However, there are some notable differences between the two that are worth mentioning.
DM (short for DrogerieMarkt) offers customers more discount and promotional activities than Rossmann. Furthermore, DM usually has larger store sizes compared to Rossmann, allowing it to have an extended range of products on its shelves.
Convenience stores in Germany
Germany is known around the world for being a leader in convenience store-based retail. The primary brand of convenience stores in Germany is called REWE, a supermarket chain with more than 3,000 locations across the country.
REWE offers everything from fresh produce and groceries to household items, health and beauty products, and even services such as banking and photo printing. The stores are typically open from the early morning until late at night, making them convenient for busy shoppers. The company also has an online presence that allows customers to order goods directly from their home or mobile device.
What makes REWE unique is that many of its locations double as gas stations, giving customers the ability to fill up their cars while shopping for groceries in one place. This eliminates time spent running errands separately and helps make life easier for German families on the go.
Fashion
When it comes to German fashion retail chains, there are some prominent names that come to mind: Hugo Boss, C&A, Adidas, Puma, Zara and H&M. Hugo Boss is one of the leading luxury brands in Europe with stores located throughout Germany offering both men’s and women’s fashion collections. Adidas is also wellknown brand in Germany with sportswear fans frequenting its stores across the country.
Household and electronics stores
The biggest names among German electronics retailers are Media Markt and Saturn, both owned by German retail giant Metro AG. These stores feature everything from TVs and audio equipment to household appliances like refrigerators and washing machines. Another major player is Conrad Electronic SE, an online retailer offering a huge selection of electronic gadgets for tech enthusiasts.
How to get your product on the shelves?
If you’re looking to get your product into German retail outlets, there are a few things that you need to consider. Firstly, familiarise yourself with the market and local laws in Germany; understanding both will make it easier for you to find distributors and retailers who can help sell your product.
Secondly, research potential partners; contact trade organisations such as the German Chambers of Commerce or even independent distributors in order to get an understanding of the market and start making connections.
Thirdly, once you’ve identified potential partners, keep in close contact with them – stay up-to-date on their sales strategies so that you can properly promote your product to them.
Finally, create marketing material for your product specifically targeting the German market; provide detailed information about your product such as its benefits and features so that retailers understand what makes it unique compared to other products available on the market.
Alliance experts can help you with all these steps, with our local team in Germany.
