Rewe exits Selgros business. The new order in retail

Selgros, the third largest player in domestic retail after Metro Cash&Carry is to exit Germany’s Rewe group and will be held, starting January 10, 2011, by Coop, which operates the second biggest supermarket chain on Switzerland’s market.

Rewe group has recently announced the sale of its 50% stake in transGourmet Holding, the shareholder of Selgros stores, to its Swiss partners Coop, renouncing thus cash&carry and food service operations.
This strategic move has a major impact over the domestic market, as Rewe, the second largest group in food retail after Metro, exits the Selgros Cash&Carry business, accounting for around half of the revenues the German group derives domestically.
Under the circumstances, the ranking of the largest retail groups in Romania will change. Thus, the second position is likely to be held by another German group, namely Lidl&Schwartz, which owns Kaufland hypermarkets and Plus discount store chain.
The battle at the top of retail groups’ ranking is thus getting fiercer and will be still fought by three groups: Metro, LIDL&Schwartz and Carrefour.