Aldi Kilburn

Germany’s discounters will remain the largest channel in the country, with 11.2% growth predicted

Germany’s grocery market is set to grow by 10.5% to €259bn by 2021, according to new figures released today by IGD.

It found that all of Germany’s major grocery channels were expected to grow over the next four years, primarily driven by inflation combined with population growth, plus retailers investing in certain channels

The online channel was set to grow the most, by 244.4%, although it said this was from a small base. Convenience was set to be the next fastest-growing channel, at 36.4%, with the discounters remaining the largest channel in Germany, with 11.2% growth predicted.

IGD EMEA region manager Jon Wright said that online shopping was gaining traction across Germany.

“While the country’s retailers have been slower than others across Europe to focus on their multichannel strategies, many are now starting to invest in and innovate more with their online offer, including click & collect services, and a number of online-only operators, for example, have launched in the market,” he said.

The country has also seen the launch of Amazon Pantry and there is media speculation that AmazonFresh will launch in 2017. The convenience channel is also growing.

“New convenience and forecourt stores are opening across Germany and convenience food is now being offered in other store types such as supermarkets and discounters, as all retailers look to compete to meet shoppers’ needs for food to go as well as food for later,” Wright added.

“There are also lots of new retail concepts emerging across Germany’s grocery market, which until recently has been traditionally dominated by discounters and supermarkets.”

The market is seeing new players providing alternatives to the usual stores with brands such as Veganz and Eataly launching. The existing stores are investing in new shopping environments such as Aldi’s ‘Store of the Future’ concept, which has a look and feel more like that of a supermarket.