The chief executive of German retailer Rewe has admitted that its newly-acquired Extra supermarkets represent a “challenge” to the company.
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Rewe is to buy the 245 stores from local rival Metro Group almost four years after it bought some 119 Extra outlets from the company.
Rewe said the deal would also include some 61 franchise stores, including Comet outlets in North Rhine-Westphalia and Lower Saxony and Bolle outlets in Berlin.
CEO Alain Caparros said the deal would see both companies focusing on their “special sales strength” in a competitive German food retail sector.
Metro has been mulling whether to sell its remaining Extra stores since the autumn in order to focus on its Real stores.
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By GlobalDataCaparros said the second tranche of Extra stores would be a test for the company. “We will instantly intensify our Rewe store base by acquiring the Extra stores, especially in North Rhine-Westphalia and Lower Saxony,” he said.
“At the moment, Extra is certainly still an economic challenge yet we also anticipate positive synergies in logistics, purchasing and sales concepts thanks to the acquisition.”
The deal, struck for an undisclosed sum, remains subject to approval by German anti-trust authorities.
