Penny, Rewe Group's discount chain, is to begin construction of a distribution centre in eastern Germany.

The official construction of the logistics centre will begin on 9 October and is expected to be completed for opening in May 2010, the company told just-food today (5 October).

Rewe has invested EUR30m (US$43.8m) in the 25,000 square metre facility, which will create around 200 jobs.
 
The distribution centre will service around 150 Penny-Market stores.

Rewe last week acquired 39 Sky supermarkets in southwest Germany from cooperative retailer Coop eG for an undisclosed sum.

The acquisition, a bid to claim further market share in Europe's biggest economy, is designed to strengthen both companies' positions.

Rewe said it would continue to look for suitable acquisitions as it strives to expand its store network in Germany.