Nostalgic Trip: Once Prevalent: Seven Supermarkets That Once Dominated Every Neighborhood
The Demise of Major German Supermarket Chains: A Retail Landscape Reshaped
In the heart of Europe, the German retail sector has undergone a significant transformation over the past few decades. Once a vibrant landscape of various supermarket chains, the industry has witnessed the decline of several major players, including Co-op, Extra, Minimal, Allkauf, and Spar.
The Co-op, a retail giant formed by the merger of most West German consumer cooperatives, was dismantled in the late 1980s due to an economic scandal. Subsequently, many of its stores were integrated into other retail chains or sold off. One such example is Comet, which was later renamed Edeka after being sold in 2002.
The supermarket chain Spar, which was active in Germany until the early 2000s, faced financial difficulties from the 1990s and was eventually sold to the German EDEKA group in 2005. The EDEKA group integrated or restructured the Spar brand and most of its stores.
Another chain, Minimal, was originally owned by the Leibbrand group and was founded in 1973. It became part of the Rewe group after the Leibbrand group was fully acquired by Rewe in 1989. The Rewe group decided to convert all Minimal branches, as well as other brands like HL-Markt and Stüssgen, into Rewe stores in 2004.
Allkauf, founded in 1962 by Eugen Viehof and Gerhard Ackermanns, operated self-service stores and expanded into East Germany and Poland after reunification. However, it was sold to Metro AG in 1998, and most of its stores were integrated into the Real chain. The last Real stores, which included some former Allkauf stores, closed at the end of 2024.
The rise of discount retailers, such as Aldi (split into Aldi Nord and Aldi Süd) and Lidl, played a significant role in the decline of these traditional supermarket chains. These discount retailers, with their no-frills, low-price model, eroded market share from traditional supermarkets and cooperatives. Aldi alone operates over 12,000 stores, becoming a chief competitor and reshaping consumer expectations in discount retail.
The demise of these chains was also due to market consolidation and acquisitions. Many smaller or regional chains, like Extra, were absorbed into larger groups or transformed through mergers, losing their independent identity. This consolidation led to a more centralized German retail environment dominated by a few major players.
The impact of these mergers and acquisitions on the German retail market includes increased market concentration, strategic focus on discount and online channels, exit of weaker brands, and cross-border and investment-driven ownership. For instance, the Czech-owned EP Global Commerce GmbH acquiring Metro AG in 2025 illustrates external capital influencing German retail, leading to integration with broader European supply chains and strategies.
In conclusion, the demise of these seven major supermarket chains was primarily caused by intense competition, market consolidation, and strategic mergers and acquisitions that reshaped the competitive landscape in German retail. These chains struggled to compete effectively against emerging discount retailers, changing consumer preferences, and stronger multinational players. The detailed case of Praktiker’s acquisitions and eventual insolvency shows the risks of aggressive consolidation without adaptation, while Metro’s acquisition illustrates ongoing changes favouring large investors and strategic modernization.
- The rise of discount retailers, such as Aldi (split into Aldi Nord and Aldi Süd), has significantly impacted the German retail sector, eroding market share from traditional supermarkets and cooperatives.
- Many smaller or regional supermarket chains, like Extra, have been absorbed into larger groups or transformed through mergers, losing their independent identity and contributing to a more centralized German retail environment.
- In the home-and-garden sector, the landscape has also been reshaped, with deals-and-discounts and shopping preferences shifting towards online platforms and budget-friendly options.
- The decline of these traditional supermarket chains has led to an increase in market concentration, a strategic focus on discount and online channels, and the exit of weaker brands, setting the stage for a future retail landscape characterized by fewer, stronger players.
