German Discount Sector Could Face Tough Time In Face Of Resurgent Supermarkets

German retailer Rewe has posted strong domestic results that chime with the underlying economic growth in the country. For 2010 the firm registered a 3.5% increase in total sales, which came in at EUR39bn. Sales in Germany outpaced the wider group, with growth of 4%. This growth was driven by the company's supermarket outlets, with growth up by 6.4%, but was weighed down by the underperformance of the company's Penny discount stores, which registered a 1.2% contraction in revenues. The outperformance of the supermarket sector is in line with a strengthening of the domestic consumer market and is reminiscent of

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