Grocery Store Locations in Germany: Insights and Strategies

The German grocery market is as diverse as it is competitive. Understanding the geographic distribution and market share of grocery stores across the country is vital for any business looking to gain an edge. Through comprehensive analysis, we've uncovered key insights that can help steer strategic decisions in the grocery market in Germany.

Geographic Spread and Market Density

Our analysis starts with the geographical distribution of grocery stores. The visualization below highlights clusters of grocery activity and potential untapped markets. Such insights are essential for identifying prime locations for market entry or expansion.

Below is a breakdown of the number of stores as of April 25, 2024 operated by each brand across Germany:

Brand	Count of Stores	Brand	Count of Stores
EDEKA	5,955	Nahkauf	521
REWE	4,708	tegut...	340
Netto	4,383	SPAR	302
ALDI	4,041	K+K Klaas	198
LIDL	3,196	FRISTO	154
PENNY	1,934	Alnatura	116
Norma	1,200	famila	114

 

At the national level, the distribution of grocery store brands shows a competitive market with a few leading players:

1. Edeka is the dominant brand with a substantial presence, accounting for a significant portion of grocery stores across Germany. Its widespread reach suggests strong brand loyalty and a comprehensive network of stores catering to a diverse customer base.
2. REWE follows, maintaining a strong competitive position. This reflects its strategic locations and broad appeal among German consumers, offering a mix of high-quality products and convenience.
3. Netto and ALDI are also major players, each holding a significant share. Netto’s distribution indicates its effectiveness in urban and suburban areas, while ALDI’s spread is indicative of its long-standing reputation for affordability.
4. Lidl commands a noteworthy segment, emphasizing its growth as a discount supermarket chain that competes closely with ALDI.
5. Brands like PENNY, Norma, and Kaufland represent smaller shares but are crucial in certain regions, showing specialized market strategies that cater to specific demographic and regional preferences.
6. Nahkauf, although smaller in total number of stores, highlights the diversity in consumer preferences, focusing on convenience.

This spread illustrates a highly competitive market where large chains dominate, yet smaller brands find niche markets through specialized offerings and local presence.

Store Density Across German Federal States

Federal State	Number of Grocery Stores	Number of Grocery Stores per 1,000 people
Baden-Württemberg	3,564	0.32
Bayern	5,259	0.40
Berlin	1,067	0.29
Brandenburg	1,013	0.41
Bremen	225	0.32
Hamburg	537	0.30
Hessen	2,268	0.36
Mecklenburg-Vorpommern	794	0.50
Niedersachsen	3,093	0.39
Nordrhein-Westfalen	5,704	0.32
Rheinland-Pfalz	1,427	0.35
Saarland	343	0.34
Sachsen	1,598	0.39
Sachsen-Anhalt	1,041	0.47
Schleswig-Holstein	1,138	0.39
Thüringen	865	0.41

The table listing the number of grocery stores per federal state in Germany along with a calculation of stores per 1,000 people offers a fascinating look into the distribution and market saturation across various regions. Here’s an analysis of the data provided:

• High Density Regions:
  • Mecklenburg-Vorpommern stands out with the highest density of grocery stores per 1,000 people at 0.50. This high density could be indicative of fewer population centers, requiring more stores per capita to serve geographically dispersed populations.
  • Sachsen-Anhalt and Brandenburg also show higher densities at 0.47 and 0.41, respectively, which might reflect a similar distribution strategy tailored to the rural and semi-urban population.
• Urban Centers:
  • Berlin, despite being a major urban center, has a relatively low density of 0.29. This could indicate a market saturation with larger store formats or a high presence of other retail formats not captured in traditional grocery metrics.
  • Similarly, Hamburg shows a density of 0.30, which could be due to the compact nature of the city allowing for larger stores that serve more customers, thus requiring fewer stores per capita.
• Challenges in Market Penetration:
  • States like Bremen and Saarland with densities of 0.32 and 0.34, respectively, might face challenges in market penetration. Their numbers suggest that there could be opportunities to increase store count, especially if demographic and consumer behavior trends support expansion.
• Opportunities for Expansion:
  • States with medium to high population densities but lower grocery store densities such as Berlin, Hamburg, and Nordrhein-Westfalen may present opportunities for new market entrants or for existing chains looking to expand their presence

Top Grocery Brands Penetration Across German Federal States

Bayern

• Edeka holds the largest market share in Bayern, demonstrating its strong regional appeal and commitment to high-quality products. Edeka’s dominance is supported by a network of regional suppliers and an emphasis on fresh, local produce, which resonates well with Bavarian consumers who value quality and regionality in their food choices.
• Norma, based in Nuremberg, has a significant presence, capitalizing on its regional roots and reputation for affordability. This brand's strategy of focusing on discount pricing without compromising on quality appeals to a broad spectrum of shoppers, from budget-conscious families to price-sensitive elderly consumers.
• REWE maintains a solid position with its diverse product range that includes organic and gourmet options, catering to the increasing consumer demand for sustainable and higher-quality food products. REWE’s presence is especially strong in urban areas and major cities like Munich, where consumer spending power is higher. 
• ALDI and Lidl are well-established in Bayern, each serving the budget segment of the market but with different approaches. ALDI focuses on minimalism and low prices, while Lidl offers a slightly broader range of products, including more international and specialty items, which attracts a diverse customer base.
• Kaufland appeals to consumers looking for one-stop shopping experiences, with its large stores and wide range of products from groceries to electronics and clothing. Its presence is particularly noticeable in suburban areas where consumers prefer bulk shopping to save time and money.
• PENNY, another REWE Group brand, offers a convenient shopping experience with smaller store formats ideal for quick stops. Positioned in both urban and rural areas, PENNY provides a mix of quality and value that appeals to mid-market consumers.

Berlin

• Edeka and REWE are the leading brands in Berlin, each with a strong urban strategy. Edeka focuses on offering high-quality products and a pleasant shopping environment, which appeals to a broad spectrum of consumers, from young professionals to affluent families. REWE distinguishes itself with a similar quality focus but also incorporates a strong emphasis on convenience and sustainability, resonating well with Berlin's environmentally conscious populace.
• Netto holds a significant market share with its strategy of providing affordable options. Positioned mainly in neighborhoods with lower average incomes and higher population densities, Netto caters effectively to budget-conscious consumers, offering competitive prices and essential product ranges.
• Lidl and ALDI, both strong players in the discount market, compete closely by offering low-priced groceries. Lidl slightly edges out with its newer, cleaner store formats and a slightly wider selection of private-label brands that appeal to value-driven yet quality-conscious customers.

 Hessen

• REWE is the market leader in Hessen, likely benefiting from its broad selection and strong regional presence. Its success in this region can be attributed to strategically located stores that cater to both urban and suburban consumers, offering a range of products from everyday necessities to premium options.
• ALDI follows closely, leveraging its reputation for affordability. The brand's effective distribution and store placement in Hessen appeal to a diverse demographic, from students in university towns like Marburg and Darmstadt to budget-conscious families in larger cities like Frankfurt.
• Edeka holds a smaller share compared to other major regions but still plays a significant role in the market with its emphasis on quality and local products, which appeals to health-conscious consumers and those seeking regional specialties.
• PENNY and Nahkauf, with their respective market shares, cater to the middle segment of the market by combining convenience and competitive pricing. Nahkauf, in particular, thrives in smaller communities and residential areas where larger supermarkets are less prevalent.

North Rhine-Westphalia (Nordrhein-Westfalen)

• REWE stands out as a market leader in North Rhine-Westphalia, capitalizing on its wide range of product offerings and strong focus on customer service. REWE's stores are strategically located across both urban and suburban areas, catering to a diverse clientele with preferences for quality, convenience, and sustainability.
• Edeka competes closely with REWE, emphasizing its commitment to high-quality products and regional suppliers. Edeka's presence is particularly strong in suburban neighborhoods and smaller towns, where it often serves as the primary grocery provider.
• ALDI and Lidl, both originating from this region, have a robust presence and loyal customer base. They offer competitive pricing and have been modernizing their stores and expanding their product lines to include more organic and locally sourced items, responding to changing consumer preferences. 
  
• Netto, with its focus on discount pricing, caters to budget-conscious consumers. Its stores are frequently located in less affluent areas, providing essential grocery items at lower prices, which is crucial for the economically diverse population of the state.
• Kaufland attracts customers looking for a comprehensive shopping experience with its large store formats. Found in both densely populated urban areas and suburban locations, Kaufland offers a wide variety of products, from groceries to household items, making it a convenient option for one-stop shopping.
• PENNY, another REWE Group brand, offers a more compact store format ideal for urban areas where space is at a premium. PENNY's focus on affordability combined with the convenience of frequent locations makes it a popular choice among city dwellers.
• Norma and Nahkauf have smaller but strategically important presences. Norma appeals to price-sensitive shoppers with its straightforward, budget-friendly shopping format, while Nahkauf serves as a neighborhood store, particularly in residential areas and smaller communities.

Sachsen

• Netto leads significantly, demonstrating strong regional appeal, particularly in less urbanized areas. Edeka and REWE have moderate presence, competing with ALDI and Lidl. 
• Kaufland and Norma have noticeable shares, indicating preferences for both discount stores and larger supermarket formats in this region.

Comparative Analysis

• Edeka remains a dominant force in most regions but varies significantly, from around 18% in Sachsen to over 31% in Bayern, reflecting its adaptive market strategies and regional preferences.
• REWE performs exceptionally in Hessen, likely benefiting from local operations and logistical advantages, whereas it has more balanced competition in other regions.
• Netto shows strong performance in Brandenburg and Sachsen, highlighting its success in regions with fewer urban centers.
• Differences in Kaufland and Norma's shares suggest varying consumer preferences for store formats between more urbanized areas and rural regions.
• Smaller brands like Nahkauf and dm-drogerie markt have niche but significant roles in certain regions, reflecting localized consumer preferences and shopping behaviors.

This comparative and detailed analysis underlines the importance of regional strategies and consumer demographics in shaping the grocery retail landscape across Germany. Each brand's performance is influenced by a combination of regional economic conditions, consumer preferences, and strategic positioning.

Ready to explore the German grocery market with precision? Access our comprehensive dataset of grocery store locations in Germany and leverage this data to enhance your market entry or expansion strategies.