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Rewe Weighs Sale of Penny Market’s Nearly 500 Italian Stores

Deteriorating consumer demand combined with strong discount competition may prompt offers from Lidl or Aldi.

Overview

  • Reports published Sunday and Monday said Rewe is examining the sale of almost 500 Penny stores in Italy, a network that generates roughly €2 billion in annual sales.
  • Rewe has not issued an official comment on the media reports and it remains unclear whether the company is considering a partial disposal or a full exit from Italy.
  • Industry discussion names Lidl and Aldi as the most likely buyers because Penny’s store sizes of about 1,000–1,500 square metres fit the discounter model better than large Italian chains.
  • Sources and analysts point to Italy’s falling population, slower consumer spending and fierce local competition as the main pressures eroding returns for multinational grocers.
  • A sale would reshape Italy’s discount sector, could affect staff and shoppers at hundreds of stores, and follow earlier foreign divestments such as Carrefour’s sale of its Italian supermarkets.