REWE Group
Annual Report 2020

New market hall concept

Penny Germany
PENNY’s market hall creates a larger-than-life shopping experience. The distinct features of this new store concept are fresh foods and clear structure. The aim is to highlight the variety of PENNY’s product range even more clearly to customers.

Increased structure, improved orientation and a more intense shopping experience – these are the defining qualities of PENNY’s new market hall concept. The main feature of the market hall concept: Items are displayed by product group in a U-shaped shelf design along the main aisle. The arrangement into theme worlds facilitates intuitive shopping and underscores PENNY’s product range expertise. As customers walk through the store, they will pass by the entire product range as part of a guided customer journey. Customers who want to quickly purchase something to go can take a shortcut to the checkout. The product range is based on the particular location of each store and the surrounding area. Stores that lack the space or the floor plan needed to implement the market hall concept use a modified “light” version. The store renovation projects were preceded by a detailed analysis of efficiency and market research related to customers and employee surveys in 2020.

“We respond to the wishes of our customers.”
Stefan Magel,
Executive Board Retail Germany
and COO PENNY.

What is the aim of PENNY’s market hall concept?

Stefan Magel: We have been watching a trading-up trend in the discount business for years now. The product ranges are becoming more comprehensive. We are responding to our customers’ wishes and are offering new products that include a growing range of regional, organic, convenience and vegan foods. With the help of our market hall, we will provide our customers with improved store structure and systematically offer better orientation. In the process, we will assist both “rushed” and “curious” customers. We see this in revenue and in the satisfaction ratings of our customers. One other important aspect is the high level of acceptance that the market hall concept has among employees.

What are the biggest hurdles you face in the store-remodelling work?

Stefan Magel: Unlike most of our competitors, we have a comparatively heterogeneous network of stores. As a discounter, we are in the neighbourhoods where people live. This also means that we operate stores that are much smaller than the approximately 800-square-metre variety that you typically see. We cannot apply the market hall concept to such small facilities. For these PENNY stores, we have developed a modified version that still represents a quantum leap in design. Every single store is still important to us.