– Now we will become the largest chain in the country – E24
Ole Robert Reitan says Rema 1000 is poised to become Denmark’s largest store chain, after the acquisition of 114 new stores. First, the agreement must be approved by the Danish competition authorities.
Rema 1000 Denmark, which is part of Reitan Retail, has entered into an agreement to take over the majority of the German grocery chain ALDI’s store network in Denmark. The agreement includes the purchase of 114 stores in the country.
If the acquisition is approved by Danish competition authorities, Rema 1000 will become the largest store chain in the Danish grocery market, according to Ole Robert Reitan.
– ALDI called us this summer and said that they wanted to wind down operations in Denmark and had identified us as a desired buyer. Since then, we have sent draft agreements back and forth between Germany and Denmark, says Reitan to E24.
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Keeps the price hidden
The Rema 1000 top says the acquisition is “very emotional” for the Reitan family.
– Especially for my father, who traveled to Germany in 1976 to study the business model of the Albrecht brothers, says Reitan, referring to the brother pair Theo and Karl Albrecht, who established the discount chain in 1960.
– That became the inspiration for the whole low-price philosophy behind Rema 1000. They were great role models for us, so it is great to make such an agreement on a good note, he says further.
Reitan says the parties have agreed not to say anything about the price.
– Getting a call with an offer to buy sounds like a grateful negotiating position?
– The negotiations have shown us that it is no coincidence that the Albrecht family has been very successful in the grocery industry, Reitan replies.
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– Becomes Denmark’s largest store chain
It is almost 30 years since the first Rema 1000 store was established in Denmark.
Since the low-price chain decided to bet seriously, around 2005, they have established 330 stores and conquered market shares. Last year, Rema 1000 Denmark’s stores had approximately NOK 25 billion in revenue.
– If you add the turnover the ALDI stores have today, then in my mind we will be Denmark’s largest store chain. Furthermore, we have ambitions to increase turnover per store – we see that the Danes already like our concept better than ALDI’s, says Ole Robert Reitan.
In addition, agreements include the purchase of three distribution warehouses, a portfolio of properties and development projects, Reitan Retail states in a press release.
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Must be approved by the competition authorities
Before the agreement is in the box, it must be approved by the Danish competition authorities.
– The reason why we did not buy the entire company, but the portfolio we did, is precisely to be well within our best assessment of what the competition authority will allow, says Reitan.
Reitan Retail states that the agreement does not cover ALDI’s head office and remaining stores in Denmark.