German retailer Rewe has decided to stop trading under the Penny banner in western Austria.
The retailer will convert its Penny discount outlets in Tyrol and Vorarlberg into Billa supermarkets, it said.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
A spokesperson for the retail giant told just-food today (10 October) it has handed ten Penny stores to its Billa chain in the region amid an “optimisation” of Penny’s store network.
“The reason is the following: in Tyrol Penny was active with seven stores, which is a relatively small number,” the spokesperson told just-food. “Especially if you consider that we have to afford promotional marketing measures for such a little number of locations.
“We had two options: either to further expand or to hand over some stores. Due to the fact that Penny is not that well-known in the western part of Austria we decided to focus on those stores, which are well accepted and very successful.”
Rewe operates around 290 Penny stores across Austria. The spokesperson said it will remain active in regions from Salzburg to Burgenland but could return to western Austria in the future.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe spokesperson added: “If there are suitable locations, Penny will open new stores.”
