Cartel Office casts doubt on the EDEKA-tegut deal
- Aug 5
- 2 min read
Updated: 5 days ago
TL;DR: Germany's Bundeskartellamt has raised serious competition concerns about EDEKA's planned acquisition of tegut, flagging problems in 37 regional markets — a ruling that underlines how concentrated German grocery, and its retail-media power, has become.
Germany's competition regulator, the Bundeskartellamt, has issued a preliminary assessment raising serious competition concerns about EDEKA's planned acquisition of tegut.
The regulator flagged problems in 37 regional markets and said EDEKA's proposed remedies are inadequate, putting the deal in doubt. The acquisition covers 202 tegut supermarkets, 41 automated 'teo' stores, a bakery and a logistics centre.
Why grocery concentration matters to marketers
This is not just an M&A story. Germany's big four grocers — EDEKA, REWE, Schwarz and ALDI — already hold more than 90% of grocery sales, with EDEKA alone at around a 30% procurement share. That concentration shapes everything from shelf access to retail-media pricing.
For brands, fewer, larger retailers means more powerful gatekeepers. Retail media networks run by dominant grocers become near-unavoidable channels, and negotiating leverage tilts further toward the retailer.
The retail-media angle
As grocers consolidate, their retail-media arms gain scale and pricing power. Brands increasingly have to pay to reach shoppers on platforms owned by the very retailers that stock them — and consolidation reduces the alternatives.
Our read: whether or not this specific deal proceeds, the direction is clear. German grocery is highly concentrated, and that concentration hands retailers growing control over both distribution and media. Marketers should plan accordingly.
What brands should do
Diversify how you reach shoppers so you are not wholly dependent on one or two dominant retail-media networks. Build direct relationships and first-party data so you retain some leverage as gatekeepers consolidate.
The practical takeaway: monitor retail consolidation as a marketing risk, not just a supply-chain one. The more concentrated your route to shoppers, the more pricing power sits with the gatekeeper.
Quick FAQ
What did the Bundeskartellamt say?
It issued a preliminary assessment raising serious competition concerns about EDEKA's acquisition of tegut, flagging problems in 37 regional markets and calling EDEKA's proposed remedies inadequate.
How concentrated is German grocery?
The big four — EDEKA, REWE, Schwarz and ALDI — hold more than 90% of grocery sales, with EDEKA alone at around a 30% procurement share.
Why does it matter for marketers?
Grocery consolidation strengthens retailers as gatekeepers and boosts their retail-media pricing power, reducing brands' leverage and alternatives for reaching shoppers.
— Oliver Nikolla-Casado, International Markets Reporter at Marketing Minute
The takeaway: retail consolidation concentrates pricing power in retail-media gatekeepers — diversify your routes to shoppers before your options shrink.
How dependent is your brand on one or two dominant retail-media networks to reach shoppers?
If you would like to know more about this topic, please contact us on danieln@merxmarketing.co.uk
Sources: Bundeskartellamt, Finanznachrichten.
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Written by Oliver Nikolla-Casado, International Markets Reporter at Marketing Minute
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