Germany Edeka Connects Shopkeepers with Startups

Denise Klug (Senior Retail Analyst)
29 June 2017

German market leader Edeka has launched an internet platform to seamlessly connect its independent shopkeepers with startup supplier companies.

According to Lebensmittel Zeitung, the website foodstarter.edeka has seen 180 shopkeepers and 120 founders showcasing 240 products register after its initial test.

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Denise Klug (Senior Retail Analyst)
Denise Klug (Senior Retail Analyst)

Opinion A Commitment to Its Fundamentals

29 June 2017

Supermarkets and hypermarkets operator Edeka’s feat has been to secure sales leadership in a country where discount retail has its origin and accounts for 30% of market share. Edeka’s success is driven by 4,000 independent shopkeepers which have always been the strongest asset and delivered further each year. 

These shopkeepers have managed to adapt grocery stores to local requirements, in terms of service, layout and, of course, offered ranges. The independents have a strong rootedness in the region they operate in luring shoppers instore with events and a very personal approach.

To build a bridge between them and trendy new products is a very smart decision for various reasons. With the new platform, the Edeka HQ is showing commitment to its shopkeepers while it will surely empower them to further differentiate by catering further for the specific demands of their customers. Successful introductions could see a roll out in the Edeka region in question, if not across the entire network. In general, product lifecycles are increasingly getting shorter. Shoppers and particularly the highly valued group of millennials are looking for new trendy goods more than ever. They do not really strive for permanent listings but for rotating, exciting and ideally also emotional goods. Foodstarters could help to perfectly respond to this trend.

For startup suppliers, it will reduce the number of bureaucratic hurdles they must face to get a listing while making field tests possible without having to provide huge amounts for a nationwide stunt. The other side of the coin is that once a fad over a new good is over, it will be delisted as easily and quickly as it got a place on a shopkeeper’s shelf.

 

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