ORGANIC SUPERMARKET STATISTICS
Thursday, February 21
83 new specialist organic stores and organic supermarkets were launched in 2007 in Germany. These included 18 stores that moved to new, larger premises. Never in the last ten years have we seen so many organic stores opening their doors for the first time. At the beginning of 2008, there are now around 450 specialist organic stores and organic supermarkets in Germany with over 200 m² of retail space. From 2000 to 2006, between 25 and 60 new organic supermarkets were founded every year.

The roughly 15 % annual growth rate over several years experienced by the organic food market in Germany means that the industry is in an unusually buoyant mood. Organic supermarket chains in particular are pulling out the stops and going all out for expansion. New sites are being occupied. In towns where a company already has a presence, there is now a higher density of its stores. But individual owners of organic supermarkets are taking advantage of the situation too. More than half of all new stores belong to entrepreneurs who are enlarging their premises or have found a new and often better location.

By the end of 2007, 39,637 m² of new retail space had been created (taking into account losses due to closures). Compared with 2000, the new retail space created in 2007 has increased by more than a factor of four.

In 2007 the number of new stores managed by their owners (46) exceeded those of the chains (37). But since the chains usually rent a larger area of retail space, about 60 % of the new floor space is accounted for by companies like Alnatura, Basic and Denn’s Bio (a total of 23,578 m²). The average retail space per newly opened specialist organic store/ organic supermarket was 477 m², which is roughly 5 % less than last year. For quite a few years now, the average shopping area in new stores has ranged from 400 m² to 500 m², and there is no sign of it increasing.

On the other hand, a change can be seen over time in the regional distribution of new stores: we are beginning to see initial indications of saturation in the conurbations, whilst the less favoured regions with smaller towns (under 100,000 inhabitants) are now gradually being developed. However, the east of Germany is an exception to this trend.

The second Marktladen store belonging to Michael Schneider (picture) in Tübingen can be cited as an example of the 46 new organic supermarkets opened by independent entrepreneurs. After the hugely successful launch of the first organic supermarket at the main railway and bus station in Tübingen in 2004, Mr Schneider wanted to open up the north of the city with a second store. Together with other shops, his generously proportioned 400 m² premises are located in a modern market hall in the centre of Tübingen-Waldhausen. Mr Schneider is a typical former wholefood store owner who began with a small shop and has expanded step by step. For this reason, businesses with two, three or four medium-sized stores or specialist organic shops are no longer rare in Germany.

And another trend can be clearly seen: well established owners of health food stores are leaving behind the classic Neuform line and are developing a new type of specialist whole food/health food store. Several were launched in 2007, and we reported on the Sperlings natürlich stores in Reutlingen and Reformhaus Kaliss in Ludwigsburg. These businesses helped to put Baden-Württemberg in the lead in terms of new stores in 2007. This new type of store is a clear indication of how things are developing, namely towards a single health and environment-oriented industry. The manufacturers of the classic whole food brands and of health food brands have long since adjusted to this situation and supply (with certain limitations) all manner of specialist businesses. The number of well known manufacturers restricting themselves to supplying Neuform products with the three gables logo to Neuform health food stores, and therefore not supplying the whole food trade, is getting smaller all the time.

Conclusion and future prospects:

Enlarging stores and founding new organic supermarkets is in full swing and will continue in the months to come. As long as the figures for the new launches add up after two to three years, expansion will be unchecked. Many in the business want to get as big a slice of the organic market cake as possible. Up to now, surprisingly few bankruptcies or closures have occurred, which does not mean, however, that things are functioning everywhere as they should, an example being Erdkorn in Berlin, that had to close a store. Organic supermarkets, together with the discounters’ economy organics, are obviously what most consumers want. If this was not the case, they would not be so popular. (Picture: Landmanns)

The critical and negative reporting on the organic industry in practically all the big magazines in 2007 has obviously not been detrimental to the organic boom. Much more of a problem have been supply complications in some product groups. We can assume, therefore, that in 2008 between 60 and 80 new specialist organic stores or organic supermarkets will open their doors, thus raising the total in Germany to well over 500. Even on a worldwide scale, this will be a unique development.

By Kai Kreuzer

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