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German discounter, Rewe, has stated that it intends to invest over a billion euros in its logistics network.

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We round up the latest news online grocery in Germany as Rewe trials free delivery for VIP customers and dm tests free click & collect.

Rewe trials free delivery for VIPs in Berlin and Cologne...

Rewe is reportedly trialling free delivery in Berlin and Cologne for select VIP customers spending €40 or more. This is initially available for six months, although it can be extended on request. Rewe’s online grocery service is currently available in around 75 German cities.

The retailer is also testing an online marketplace which sells products from specialist partners including wine or toys.

...As dm tests free click & collect

Over the summer, dm is trialling a free click & collect service with no minimum spend across most of its German stores. Until this point, users paid €4.95 for the service, the same as home delivery.

This follows rival Rossmann's introduction of click & collect in January 2016, although this has a minimum order value of €20.

How to process, pick and deliver orders, whilst balancing operating costs with customer expectations is today’s online supply chain conundrum. Find out why businesses are prioritising some initiatives over others and how these priorities may need to shift to help businesses deliver more profitable online operations in future in this report.

Rewe has announced plans to invest in its online services, including launching a meal kit delivery service in Germany.

Rewe's online delivery service

Rewe recently launched a new app for its online shopping site and has been working to provide customers with more flexible and convenient ways to shop. Its new app has improved functionality and customers can now order and pay for their groceries all in one go. The retailer has also announced that it will expand its click & collect station network throughout 2017, with a particular focus on smaller towns and rural areas. The pick up service has no minimum value order and a fee of only €2. There are currently 15 pick up locations but Rewe has plans to expand this to 73 cities across Germany.

Meal kit market gathering pace

HelloFresh, which originated in Berlin, launched in 2012 and has become increasingly popular. In the first nine months of 2016 is achieved worldwide sales of €440m ($472m), double its sales in the same period of 2015. A number of similar start ups have also since entered the German market including Kochhaus and Kochzauber, but Rewe is the first major grocery retailer to introduce the service.

Its meal kit service builds on Rewe's online offer, with customers able to choose a recipe and select from recommended ingredients according to price and brand. This gives more flexibility and choice to the customer than the HelloFresh model, but targets the same customers who are looking to save time but still cook at home.

Multichannel focus

The introduction of the meal kit solution demonstrates Rewe's commitment to strengthening its multichannel offer, creating convenient ways for shoppers to purchase their groceries and save time. The advantage of purchasing a meal kit from a supermarket chain is that the service is combined with the online ordering service, allowing customers to purchase their usual groceries as well as the specific meal kits. This increases its convenience to shoppers and means that they only need to make one order from one place for all their grocery needs.

More on Rewe's supply chain

Check out our Rewe Group supply chain snapshot for an essential summary of supply chain priorities, latest network developments, and other key statistics for the retailer.

Rewe Group has begun building a new distribution centre in Hungry.

26,500 sq m facility

Rewe Group’s discounter arm, Penny, has begun construction on a new distribution centre in Veszprem, central Hungary. The facility, which will be 26.5 thousand square metres in size, will employ 130 new workers and will see Rewe Group invest over €24m in the region.

Responding to consumer demand

The distribution centre has been strategically located for its road links to the north, west and east of Hungary, including Budapest, 120km away. It will serve 60 Penny discounter stores in southern and western Hungary. Rewe Group stated that Penny’s rapid sales growth in the country strongly contributed to the decision to invest in a new logistics hub.

Looking for more information on Rewe Group?

Our Rewe Group supply chain snapshot is an essential summary of supply chain priorities, latest network developments and other key statistics for the retailer. Check it out here.

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