German retailer Rewe is planning to undertake an extensive restructuring programme with the aim of tightening its portfolio, doubling profitability and taking a more active role in the consolidation of the German and international food retail industry.

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Chief executive Achim Egner told Sueddeutsche Zeitung in an interview that the restructuring programme is designed to make Rewe a major player in the European and international food retail market. It is hoped that Rewe’s international food retail operations will increase by 10% to 40% and in the medium term to 50-60%.


In particular, Rewe hopes to expand in Eastern Europe and Russia, and around half of 2006’s investment budget of more than EUR€1bln (US$1.2bln) is being earmarked for international purposes.


Rewe has set a goal of reaching a sales margin of 2-3 % in the medium term, from today’s 1.5%.

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