The food market in Germany is being dominated by four great chain stores. Edeka, Rewe, Aldi and Lidl together have a total market share of 85 percent. The supremacy of the four retail giants makes it's strength known mostly on the German wholesale markets. Many market companies say that the business has changed dramatically in the past five years. Wholesaler Willi Büttgen of the Marleaux GmbH on the Düsseldorf wholesale market goes even further: “The future of wholesale markets is dead!”
“The situation keeps spiralling further downward”
Many wholesalers and also producers on the German wholesale markets bemoan the measly prices for fruit and vegetables. “The time of wholesale markets is over”, Willi Büttgen predicts. “The influence of super markets and the discount stores is destroying the market and the prices”. The traditional companies have been driven from the wholesale market over 50 years ago. The trader acquires his goods from producers and exporters worldwide. Büttgen is of the opinion that the wholesale markets are past the point of no return. “It's already the eleventh hour for the wholesale markets! The situation keeps spiralling further downward”.
Chain stores avoid the wholesale market
Through the years, the power of the big retail chains has further increased. While in 1999 there were still eight big chain stores with a combined market share of 70 percent in Germany, nowadays there are only four with a combined market share of 85 percent. “The buying behaviour of the people has fundamentally changed”, reports Büttgen. “Weekly markets and smaller supermarkets cannot keep up. They are by and by breaking apart”. The market traders describe that many chain stores and especially the discount stores bypass the wholesale market. They buy directly from the producers and can negotiate for lower prices and more favourable conditions.
Frequency of wholesale market visitors is decreasing
The market management of wholesale market Dortmund eG. also describes the changes on the wholesale markets: “We observe, that the frequency of customers who regularly visit wholesale markets is decreasing. Many customers have the market companies deliver to them. That is a service which many traders are offering now. The consequence is that the direct purchases here in the market area are decreasing”. The management sees one reason for this change especially in the increasing influence of the discount giants: “In the past, what also had an influence was the stronger increase of discount stores in the supplying of fresh produce. That did not exist up until ten, fifteen years ago”.
“The businesses are passing the wholesale market by”
A vegetable salesman on the wholesale market of Dortmund: “Five years ago, in the morning all hell broke loose. One did not have time to briefly chat or to occupy oneself with anything but the sales. Nowadays it has gotten a lot quieter. One now has time for the occasional conversation”. He also remarks: “The discount stores have too great an influence. Because of them, the businesses bypass the wholesale market”.
Willi Büttgen
Wilhelm Marleaux GmbH
Ulmenstraße 275, 40468 Düsseldorf
Tel. +49 (0)211 42262400
wilhelm@marleaux.eu