The retailer Woolworth GmbH announced an ambitious target for the German market on Wednesday. The discounter, which currently operates 530 branches in Germany, sees “potential for more than 1,000 locations” over the coming years.
Despite the difficult framework conditions, the company continues to focus on strong growth in space. As part of the expansion strategy, more than 100 new stores have been opened nationwide since 2020, Woolworth said. For the current year alone, 56 new openings are planned. In addition, the discounter wants to push ahead with its foreign expansion. For May 2023 he announced the opening of his first branch in Poland.
The company is counting on its low-price strategy to prove its worth, especially in economically challenging times. Woolworth is now also becoming “increasingly attractive to young households and those with higher incomes,” explained the retailer, citing a study by the market research institute GfK. “This means that Woolworth is growing against the trend,” emphasized the discounter.
In terms of its plans, the company sees “the vacancy in German retail as an opportunity,” explained Lennart Wehrmeier, the Woolworth managing director responsible for expansion. “We would like to fill vacant retail spaces with life again and offer the citizens a necessary range at entry-level prices. At the same time, we enrich pedestrian zones, district and shopping centers.”
In order to find suitable locations, the company says it will further intensify its cooperation with the real estate platform ImmoScout24, which it began last autumn. “We would like to grow and double our number of branches in Germany. However, the search for suitable retail space at fair rents is becoming increasingly difficult,” explained Wehrmeier. “From the cooperation with ImmoScout24 we hope to expand our network, enriching discussions with experts and ultimately real estate proposals that lead to successful rentals.”