REWE Group Grows, but Profitability Declines: Is the Golden Age of German Retail Coming to an End?

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The German retailer REWE Group reported a 3.7% year-on-year increase in revenue for the first half of 2025, reaching €44 billion, in what the company itself described as a “challenging but successful” environment.

According to an internal update, EBITDA fell by 4.2%, to €2.5 billion, while net debt rose by €1.1 billion compared to the same period last year.

For the full year 2025, REWE expects consolidated revenue of around €91.5 billion. The company emphasized that results may remain temporarily restrained due to strategic investments aimed at long-term sustainability and rising market costs, though these trends are consistent with internal forecasts.

Performance by Segment

German retail, the group’s core business, grew by 2.8%, generating €20.9 billion in revenue.
International retail, meanwhile, strengthened its position as the group’s second-largest division, with €10.3 billion in revenue — a 5.1% increase year on year.

The convenience segment maintained stability at around €7.5 billion, roughly in line with 2024 levels. The decline in tobacco sales in the Netherlands and Belgium, driven by new regulatory restrictions, was largely offset across the wider division.

In contrast, the travel & tourism segment showed remarkable momentum, with revenue rising 17.4% to €3.5 billion, reflecting renewed demand for leisure and mobility following years of subdued performance.

The DIY (do-it-yourself) sector, however, experienced a 1.2% contraction, attributed to a widespread decline in consumer confidence across the category.

Investments in the Energy Transition

In August, REWE Delivery Service announced an investment of nearly €5 million to modernize its fleet with electric vehicles, introducing 64 new Mercedes-Benz eSprinter vans in Berlin and Neuss.

This initiative aligns with the group’s broader commitment to environmental responsibility and energy transition, reinforcing REWE’s strategy to balance growth with long-term sustainability — even as profitability comes under pressure in an increasingly competitive retail landscape.

REWE Group Grows

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REWE Group Grows