According to Bloomberg, citing Corriere della Sera, at stake are almost 500 stores, about 2 billion euros in annual revenue and more than 30 years of presence in the Italian market. For European food retailers, this is potentially one of the most notable deals of recent years.
Lidl and Aldiare interested in the purchase
According to the source, Lidl and Aldi, the German discounters that have been aggressively strengthening their positions across Europe, may be interested in the assets. If the deal goes through, it would be an unusual turnaround for both chains: historically, Lidl and Aldi have preferred to grow independently, avoiding large acquisitions.
But the Italian market is increasingly breaking familiar strategies. Not so long ago, international chains saw Italy as a must-have in Southern Europe. Now major players talk about low profitability, fierce price competition and falling purchasing activity of the population. Demographic problems and a highly fragmented market, where dozens of local operators have held their positions for years, add to the pressure.
Selling “according to the Billascenario “
REWE has been through a similar scenario before. More than ten years ago, the company sold the Billa supermarket chain in Italy. Then the assets were shared by Carrefour and the Italian cooperative Conad. According to Corriere della Sera, a similar scheme may be used now: Penny may be sold not to a single buyer, but to several players at once.
A symbol of the crisis of international retailing in Italy was the recent departure of Carrefour. The French group agreed to sell its Italian operations to NewPrinces for just a symbolic 1 euro, effectively admitting that the market had ceased to be profitable.
Supermarkets are losing margins
For discounters, the situation looks different. While traditional supermarkets are losing margins, austerity formats continue to gain popularity. Against the backdrop of inflation and consumer caution, it is low prices that are becoming the main weapon in the fight for customers.
So the possible sale of Penny is not just a deal with the stores. It is another signal of how quickly the European grocery market is changing: old models are no longer working, and the largest players are forced to revise strategies that seemed unshakable not so long ago.
Neither REWE nor Penny have officially commented on the publication.
