Major Changes Ahead for German Supermarkets as Operations Shift for 2025
New regulations and loyalty programs aiming to boost sustainability and customer engagement emerge as key trends.
Germany's supermarket sector is on the brink of substantial changes as the year 2025 approaches, with both consumer loyalty programs and product offerings being recalibrated to meet new sustainability standards. Edeka and Netto Marken-Discount are set to join the widely popular Payback loyalty program as Rewe and Penny withdraw, ushering in what could be one of the largest shifts seen by these programs.
Payback, celebrating its 25th anniversary, is undergoing its most intense changes yet. According to reports from FOCUS online, both Rewe and Penny are opting to exit the program as they launch their proprietary customer loyalty systems. This change will take place on December 28, 2024, ushering shoppers onto new platforms managed directly by these grocery giants.
Software adjustments are already visible, though fully operational features remain under wraps until after the transition. Notably, Fressnapf, initially slated to depart from the Payback system as well, has reversed course, extending its partnership through 2027 to maintain customer engagement.
The transformations aren't limited to loyalty programs; multiple changes are rolling out to comply with new legal mandates. Starting January 1, 2025, it will be legally required for supermarkets and retailers to offer at least one reusable packaging option for various beverage categories, including beer, milk, and soft drinks. This move aims to broaden the availability of eco-friendly packaging and decrease reliance on single-use items, promoting more sustainable consumption practices.
Echoing this initiative is the emphasis on simplifying the return process for deposit bottles. The new guidelines will mandate supermarkets to accept bottle returns irrespective of brand or point of purchase—an approach aimed at easing the process for consumers and advancing the idea of sustainable consumerism.
The increasing pressure on German supermarkets to adopt stronger sustainability measures is becoming clearer. More stores are decreasing availability of what has been termed 'low-quality meat' from animal welfare perspective and are committing to phase out poor standards of animal husbandry by the end of 2025. This shift reflects growing customer expectations; as noted by marketing expert Martin Fassnacht of WHU, “Consumers today expect retail chains to take responsibility for issues such as sustainability and animal welfare.”
Simultaneously, supermarkets are also ramping up their offerings of organic products, promising to form partnerships with local farmers to deliver fresh produce to consumers. For customers, this demonstrates the retailers' responsiveness to growing public demands for higher quality and ethically produced goods.
Automation is another trend on the rise, with supermarkets increasingly utilizing robots and AI to manage inventory and assist consumers within stores. Some of the newest experiments show robots at work, aiding with product search and keeping track of inventories, indicating retailers' commitments to leveraging technology for improved efficiency.
Yet, this transformation may come with some challenges, particularly for consumers facing rising prices due to shifts toward higher standards of animal welfare. The prices on meat, poultry, and various other products could fluctuate, reflecting the costs associated with transitioning toward more sustainable offerings for customers.
Despite potential price hikes, the commitment to sustainability and ethical consumer behavior is undoubtedly reshaping the supermarket environment for 2025 and beyond. The coming months will reveal how these alterations significantly impact shopping habits and define the future of grocery retailing as more retailers seek to meet the dual demands of profitability and environmental responsibility.
With the exit of major players like Rewe and Penny from established loyalty frameworks, German consumers will be watching closely as they navigate the new supermarket terrain. How will these shifts impact their purchasing decisions? With sustainability and innovation among the priorities, the retail giants aim to capture and retain consumer trust—as grocery shopping evolves with the times.
