Edeka Supermarkets
edeka is one of Germany’s biggest supermarket chains.edeka edeka Its name is an abbreviation of Einkaufsgenossenschaft der Kolonialwarenhandler, meaning “Purchasing Society of Colonial Merchants”. It was formed in 1919 and was originally a wholesaler of goods for small retailers. It also provided credit and insurance services. The company was heavily criticized by the department of monopolies for its enormous size, because state officials believed that it was holding a monopoly over the retail market. The company fought the allegations, but eventually settled with the government.
The company continued to expand.edeka In the 1950s it built warehouses for tins in Braunschweig, vegetables in Cuxhaven, and fish in Kempten.edeka It also introduced self-service in its stores, and it started selling health foods and special diet products. In 1962 EdK sent delegations to the United States to study how American supermarkets worked. This was also the year when it became a member of the Union of Food Co-ops.
In the 1970s Edeka made a major organizational change.edeka It created a new structure, with twelve regional wholesalers in addition to its central company and bank.edeka These regional wholesalers supplied individual stores, and each had its own meat processing plant. They also operated their own delivery service for the stores, as well as their own warehouses for supplies like tins and canned goods. They also negotiated deals for bulk purchases of items that could be sold in large quantities to the smaller retailers.
This tightened structure was intended to reduce the company’s operating costs and make it more efficient.edeka It was a successful move, and it also enabled the company to fight off competitors such as Lidl and Rewe.edeka It was also able to compete with the larger American chains, which were moving into Europe at this time.
After the war, the company rebuilt its network of stores.edeka Its name was changed to Edeka, and it began issuing 20-mark “saving coupons,” which were redeemable for money at the company’s stores.edeka This was an attempt to combat inflation, which was wreaking havoc at the time.
The company expanded into new regions, including eastern Germany.edeka Edeka opened its first store in the former GDR in 1949. By 1961, it had 30,000 employees and sold over a million items. Edeka’s success continued, and it was a leading force in the German retail industry.