Annual Report 2024
PENNY INTERNATIONAL
Table of contents.
Achievements of the year 2024 2024 in numbers About the company Expansion Store Remodeling and Enhanced Shopping Experience Products from Romania PENNY Team Digitalization Sustainability Integrated communication WE SAVE MONEY, NOT LOVE PENNY, A COMPANY CLOSE TO ROMANIANS 4 7 8 10 12 13 18 19 23 28
4 PENNY | REWE GROUP Dear reader, We are delighted to present to you the achievements of PENNY Romania in 2024 through our annual report. Despite a volatile socio-economic and geopolitical context, marked by successive inflation increases and supply chain challenges, we have once again successfully achieved our goals. In 2024, we demonstrated agility and got even closer to our customers, offering them quality products and services in line with their needs and expectations. Here are the achievements of 2024 for each of the seven strategic pillars of PENNY Romania. EXPANSION PENNY closed 2024 with 416 stores in Romania. Over the course of the 12 months, we opened 40 new units and reached an important milestone – over 400 stores in our country. At the same time, we began construction on our fifth logistics center in Romania, located in Mihăilești, Giurgiu County, which we will inaugurate this year. By 2029, we plan to reach 600 stores and six logistics centers in Romania. Also in 2024, Achievements of the year 2024 we surpassed the milestone of 200 partner butcheries affiliated with PENNY stores nationwide, and we plan to increase the number to 375 by 2029. STORE REMODELING AND ENHANCED SHOPPING EXPERIENCE Currently, all units in Romania follow the PENNY Punct format, and all new store openings are BREEAM In Use certified. In 2024, we also introduced a new shopping experience for our customers in Bucharest – we launched the first autonomous PENNY store in the world, which offers a unique, digitized experience, providing customers with more autonomy and more time for themselves. PRODUCTS FROM ROMANIA We continue with confidence the 3RO initiative, through which we aim, together with the relevant authorities and the local business environment, to offer Romanians as many products as possible with ingredients primarily sourced from Romania, processed and packaged in the country. Currently, 100% of the fresh meat (beef, chicken, and pork) sold in PENNY stores aligns with the 3RO objective, and some of our partners have managed to develop production and processing lines for 3RO products. We continue to expand our private label portfolio to reach our goal of having 45% private labels in our portfolio, and we are pleased that many products from ranges such as Hanul Boieresc, Boni de tot, or SuporteRO are increasingly sought after by our customers.
5 PENNY TEAM It is our priority that every PENNY employee feels valued and has the guarantee of a stable job. We make sure to offer our colleagues a comprehensive benefits package, such as additional vacation days, vouchers, and performance bonuses. Last but not least, we are proud to have received the Top Employer certification for the fourth consecutive year. DIGITALIZATION Last year, we continued our collaborations with Glovo and Bringo and formed a new partnership with Tazz to be as close as possible to our customers, regardless of the platforms they use. 2024 was also the year of digitization at PENNY, marked by the launch of the first autonomous PENNY store in the world, in Bucharest. You enter, shop, pay, and leave, with the store offering a unique, digitized experience that gives customers more autonomy and more time for themselves. SUSTENABILITY All PENNY stores in Romania are BREEAM certified, and all newly opened stores are BREEAM In Use certified. Sustainability remains a very important pillar for us, as evidenced by the large number of active partnerships we have with non-governmental organizations in the country, for the benefit of communities. One example is the launch of the cafeteria at the Bufkids Center in Buftea, which offers children in the community the opportunity to learn in a healthy environment, suitable for their development. The National Food Collection campaign, organized together with the Federation of Food Banks in Romania (FBAR), encouraged customers to purchase and donate non-perishable food items, which were quickly collected and distributed through the Food Banks Network and partner organizations, ensuring they reached those in need as quickly as possible. By the end of 2024, the Food Banks Network was collecting products from 291 PENNY stores, and approximately 3,100 tons were collected from the PENNY network, representing 33.5% of the total amount collected nationwide. Last but not least, through every loyalty campaign we run in our stores, we contribute, together with our customers, to the well-being of the communities we are part of. INTEGRATED COMMUNICATION 2024 was an active year regarding communication activities. We relaunched Haiduc, our private beer brand, continued the „Memory of the Summer Taste” series with a new edition featuring recipes with stories, alongside Chef Alex Petricean, and set new records with the second edition of the PENNY Points League. PENNY’s corners and activities engaged the public at events where we were partners throughout the summer and beyond. Let’s not forget RONNY, who continues to be the most loyal supporter of the National Football Team, always present at matches. We also continued the PENNY today corporate events series with a new edition in which we presented the financial results at our store in Otopeni. We also met with the press representatives and partners at the launch event of the first autonomous PENNY store and celebrated with our team the achievement of an important milestone – 400 PENNY stores in Romania. Our 3RO and PENNY Points League projects were awarded at important communication competitions
PENNY | REWE GROUP 6 | in the country: 3RO – Silver Medal in the Corporate Communication Campaigns category at the COMMA Awards 2024, and the PENNY Points League – Gold in the Sports and Entertainment category at the Romanian PR Awards 2024. 2024 was a full and very successful year. We would like to thank our colleagues for all their hard work, as well as our customers and partners who trust us and support us every day. We invite you to explore the projects we carried out in 2024 in the following pages. ENJOY YOUR READING!
The achievements of 2024 7 | Over 1.9 bilion euros Turnover in 2024 Over 177 millions of euros in investments Over 7.500 of colleagues in the team 416 stores & 4 logistic centers in Romania the 10th consecutive year we registered the highest increase in turnover among the food retail entities in REWE Group 2024 in numbers
8 PENNY | REWE GROUP About REWE Group PENNY Romania is part of the REWE Group, one of the leading retail and tourism groups in Germany and Europe. The group’s values are clear and transparent, and they form the foundation for conducting business in a responsible manner. PENNY in Romania Since 2005, we have been investing in the development of local communities, with a responsibility towards people and the environment. That year, we opened the first two units in the country and immediately gained confidence that we would successfully achieve our ambitious expansion plans. In 2020, 15 years after entering the Romanian market under the Penny Market brand, we decided to accelerate our expansion in the country under the new, unified PENNY brand. Thus, starting in 2020, we began a new strategic cycle for the next nine years, based on seven pillars of development: expansion, store remodeling and improved shopping experience, products from Romania, the PENNY team, digitization, sustainability, and integrated communication. In 2024, the PENNY network in Romania reached a total of 416 stores nationwide, with 40 stores opened in just one year. These are served by four logistics centers located in Ștefăneștii de Jos, Turda, Bacău, and Filiași. In 2024, PENNY also began construction on its fifth logistics center in Romania, in Mihăilești, Giurgiu County. The PENNY team consists of over 7.500 colleagues who work every day with passion and dedication. We were awarded the Top Employer certification for the fourth consecutive year in Romania.. About the company
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10 PENNY | REWE GROUP Expansion Without a doubt, the most important achievement of last year was surpassing the 400-store milestone nationwide and reaching a total of 416 PENNY stores in Romania by the end of 2024. This was a goal successfully accomplished according to our expansion strategy. In terms of figures, we invested 155 million euros in Romania in 2024 for new store openings, land acquisitions, and the commencement of work on our fifth logistics center in Mihăilești, Giurgiu County. We are continuing our ambitious expansion plans and aim to invest 1 billion euros in Romania by 2030, through the expansion of our network to a total of 619 stores and 6 environmentally friendly logistics centers, properly designed to meet the needs and expectations of Romanian consumers. We are delighted to get closer to our customers from all corners of the country and to actively contribute to the growth of the Romanian economy through sustainable, fair practices aligned with Romania’s economic development and the needs of Romanian consumers.
11 Timiș Arad Bihor Maramureș Suceava Neamț Iași Harghita Botoșani Sălaj Cluj Călărași Ialomița Tulcea Brăila Buzău Alba Sibiu Brașov Covasna Bacău Galați Constanța Mureș Bistrița– Năsăud Argeș Teleorman Giurgiu Prahova Olt Dolj Gorj Caraș Severin Satu Mare București Ilfov Vaslui Vrancea Dâmbovița Vâlcea Mehedinți Hunedoara 11 13 13 13 10 9 5 6 10 7 4 7 8 12 6 18 12 6 6 7 10 11 10 7 9 5 7 7 14 9 6 46 14 7 6 14 15 5 11 8 9 14 10 416 4 stores logistic centers
12 PENNY | REWE GROUP Store Remodeling and Enhanced Shopping Experience Providing the most pleasant shopping experience is one of our top priorities. Currently, all PENNY stores operate under the PENNY concept, and all newly opened stores are BREEAM In-Use (Building Research Establishment’s Environmental Assessment Method) certified, in line with our sustainability strategy that follows European legislation and meets global environmental requirements. In 2024, we also launched a new store format for our customers in Bucharest – the first autonomous PENNY store in the world. This is a new, digital experience that offers customers more autonomy, especially for those who highly value their time. We are testing this new format and paying close attention to customer feedback in order to continually improve our services. We are continuously adapting to provide our customers with an improved and fast shopping experience, especially for those with a busy lifestyle, offering selfcheckout stations, ideal for smaller shopping baskets. PENNY stores cater to modern consumers with a fastpaced lifestyle, and the PENNY Punct format adheres to energy efficiency principles, aiming to enhance comfort not only for the customers who visit us but also for our employees, to whom we want to offer a friendly workplace, adapted to their needs.
13 Products from Romania 3RO — products with the main ingredient sourced from Romania, processed and packaged in the country At PENNY, we aim to harness the potential of local production and offer our customers fresh, affordable Romanian products. For this reason, in 2020, we committed to achieving the 3RO objective, under which 60% of our assortment would have its main ingredient sourced from Romania and processed and packaged in the country. This is an ambitious project, and we have made significant progress in achieving it. Today, we have over 800 3RO products on the shelves of PENNY stores nationwide, accounting for 53% of our turnover by the end of 2024.
14 PENNY | REWE GROUP Also, under the 3RO umbrella, we launched last year the Study on the Economic, Social, and Environmental Impact of the Pig Farming Sector in Romania, in collaboration with the Academy of Economic Studies and Cris-Tim. The study aimed to analyze the pig farming sector, highlighting both the challenges and opportunities at the national level. In Romania, the pig farming industry has been significantly impacted by the spread of African Swine Fever, causing adverse effects across the entire value chain. As a result, domestic pork production does not currently meet local demand, and Romania relies on imports. Currently, 100% of the fresh beef, chicken, and pork products sold in PENNY stores in Romania align with our 3RO objective, and we intend to continue communicating with local producers to find suitable solutions for developing production capacities and overcoming the challenges they face in this process, with the aim of balancing Romania’s trade balance. Studiu privind evaluarea impactului economic, social și de mediu al sectorului creșterii suinelor în România Mihai Dinu coordonator Bogdan-Cristian Chiripuci Marius Constantin lonuț-Laurențiu Petre Bianca-Eugenia Leoveanu-Soare Elena-Mădălina Deaconu Ina Nimerenco Raluca-Mihaela Drăcea Raluca Ignat Raluca-Georgiana Lădaru Roxana Simona Pătărlăgeanu Irina Elena Petrescu Radu-Gheorghe Antohe Partners
15 Local Suppliers and Romanian Products 3RO is a project through which we aim, alongside our partners and consumers, to contribute to a society three times better for all Romanians and for future generations. To offer our customers Romanian-sourced products and support the circular economy, we collaborate with an extensive network of partners – 87% of them are Romanian companies registered in Romania, and their number increases year by year.
16 PENNY | REWE GROUP Private brands 2024 was a very important year for the development of our private brands. We relaunched our Haiduc beer brand with new packaging and a unique recipe made with 100% Romanian ingredients, designed to offer a refreshing experience.
17 We also continued the „Hanul Boieresc – The Memory of Summer Taste” video series with a new edition featuring story-driven recipes, alongside Chef Alex Petricean. The new recipe series was inspired by people’s stories and memories. Chef Alex Petricean engaged both his community and the PENNY Instagram community in the recipe selection process, inviting the public to share memories in the comments about traditional dishes—stories of recipes that bring back the taste of childhood memories. The most captivating recipes were selected to be reinterpreted in the video series using 3RO Hanul Boieresc products from PENNY. Last year, we also reached the milestone of 200 partner butcher shops affiliated with PENNY stores nationwide. These 200 partner butcher shops, along with our 10 own butcher shops, mark a significant step in our commitment to offering high-quality local products and strengthening collaborations with traditional butcheries across different regions of the country. We plan to increase the number of butcher shops to 375 by 2029.
18 PENNY | REWE GROUP PENNY Team We continue to invest in people A healthy work environment, where flexibility, communication, transparency, and performance are top priorities, is something we take pride in at PENNY. We provide our colleagues with all the resources they need for personal and professional growth. The comprehensive benefits package for PENNY employees includes additional days off, private health insurance, a newborn bonus, vouchers for school supplies or diapers, among many other benefits valued by our colleagues. Top Employer 2024 For the 4th consecutive year, we are honored to receive the Top Employer certification in Romania. This title is awarded by the Top Employers Institute, an international authority in the field of human resources. We are proud that our dedication to developing and motivating our team is recognized and appreciated both nationally and internationally.
19 Digitalization We have named 2024 the Year of Digitalization, a year marked primarily by the launch of the world’s first autonomous PENNY store. More than 7,000 customers visit the autonomous store daily, where they find the same number of products and the same portfolio as in all other PENNY stores. We continue to test this store format and listen to customer feedback to enhance this new experience, offering even more autonomy.
20 PENNY | REWE GROUP In 2024, we invested even more in digitalization, seeking smart solutions to make our customers’ lives easier, because we care about their priorities and the time they spend shopping at PENNY. We have reached our customers’ doors through Glovo, Bringo, and Tazz. As part of our commitment to omnichannel development, last year we expanded our delivery services and signed a new partnership with Tazz. With the help of these three home delivery partners, 2024 looks impressive in numbers: We delivered from 190 stores In over 60 localities More than 700,000 deliveries in one year A selection of over 2,500 items Positive customer reviews > 95%
21 We combine digitalization with reducing food waste, and that’s why we are taking a series of actions in this direction. One example is the close collaboration we have with the Bonapp.eco app, which aims to combat food waste by connecting consumers with retailers offering high-quality food products that are close to their expiration date. Our customers who have the app installed can benefit from discounts of up to 50% on products and product bundles listed by PENNY. By the end of 2024, we had 371 PENNY stores listed in the bonapp.eco app for reducing food waste, and thus, we are supporting our customers in all counties of the country. By the beginning of December 2024, we had saved 27 tons of food from waste.
22 PENNY | REWE GROUP As a strategic partner, PENNY Romania supported the launch of the Money in Motion (MiM) app, a financial education app for Romanians. This initiative highlights our commitment to contributing to the education of Romanians for a sustainable lifestyle, including promoting the habit of smart shopping. The application for promoting the habit of smart shopping, founded by Iancu Guda, provides access to resources and tools for managing personal finances. Last but not least, the PENNY Card is the loyalty program that brings together over 3.5 million digital and physical cardholders. The program is based on the use of a digital card or a physical card, which can easily be connected to the digital account in the PENNY app. Customers who sign up for the PENNY Card loyalty program have access to an intuitive digital platform, available on both Android and iOS devices. After downloading the PENNY app, they simply need to activate their digital card and scan it at the checkout during shopping. By using the PENNY digital card with every purchase, customers accumulate loyalty points, which they can use on future store visits to enjoy discounted prices or participate in contests with attractive prizes.
23 Sustainability Every year, we launch our sustainability report, which reflects PENNY’s performance and commitments towards a responsible business model.
24 PENNY | REWE GROUP The most recent report, launched at the end of last year, highlights PENNY’s key achievements in 2023, structured around the four strategic pillars of sustainability: one that sets the limits and directions – Corporate Governance and Business, and three operational pillars – Sustainable Assortment; Energy, Climate, and Resources; Employees and Society. COMMUNITY INVOLVEMENT Being a sustainable company means engaging in causes that need support and have a direct impact on the communities where we are present. Access to education and nutrition are fundamental rights for every child. To support these rights, PENNY Romania initiated and developed a project to build the BufKids Canteen at the Bufkids Center, in collaboration with Habitat for Humanity Romania and the Hercules Association, with the aim of providing proper and healthy nutrition for vulnerable children in Buftea. Through this project, we aim to provide daily nutritious meals for 50 children from the Buftea Day Center, helping them actively and effectively participate in the educational process and supporting their harmonious development. Additionally, PENNY’s partnership with the Federation of Food Banks in Romania (FBAR) and the nine Regional Food Banks in Bucharest, Cluj, Roman, Brașov, Oradea, Timișoara, Constanța, and Craiova is valuable both in terms of funding and product donations, involvement in National Food Drives, and participation in events.
25 The objective of this project was to mobilize the community to support vulnerable individuals through donations of non-perishable food. Under the slogan „Together we feed hope”, the campaign was one of the largest solidarity initiatives in Romania, bringing together the efforts of customers, volunteers, and partner organizations, and providing essential support to thousands of families who struggle daily with scarcity. For us, another significant step in 2024 was the expansion of the process of collecting food close to its expiration date, but still suitable for human consumption, from PENNY stores. This initiative led to a significant increase in the quantities collected and provided constant support to partner organizations that care for people in need. By the end of 2024, the Food Banks Network had received products from 291 PENNY stores. One project with a significant societal impact is the National Food Collection. PENNY was a partner in both editions of the National Food Collection, where the following results were achieved: 378 participating stores (the entire network of stores at that time) collected 95.8 tons of food, which were donated to 151 partner NGOs supporting 23,065 vulnerable individuals. 403 participating stores (the entire network of stores at that time) collected 166.8 tons of food (representing a 73.29% increase compared to the amount collected during the Easter edition in PENNY stores). The food was donated to 200 partner NGOs supporting 27,282 vulnerable individuals. A total of 2,738 volunteers were involved in the drive. Easter Edition Christmas Edition
26 PENNY | REWE GROUP Last but not least, through each loyalty campaign organized in the stores, PENNY contributes, alongside customers, to the well-being of the communities we are part of. With the occasion of the 2024 loyalty campaigns, PENNY customers enjoyed the special collection of VIVESS crystal glasses from the „Offer a complete experience to the taste” campaign, played with plush toys from the „Enjoy a plush of health at play!” campaign, invented new recipes in the kitchen during the „Maximize your imagination in the kitchen!” campaign, and relaxed with VIVESS textile products from the „Invite comfort into your home” campaign. Through all the loyalty campaigns, we supported the World Vision Romania organization, which has been running the „I Want to Be in the 9th Grade” program for years. The common goal was to help and encourage dozens of students to access educational programs and continue their studies
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28 PENNY | REWE GROUP Integrated communication PENNY TODAY. We continued the PENNY today series, and in 2024, we organized the 9th episode in which we presented the financial results of 2023, right at our home, at the PENNY store in Otopeni, the most sustainable PENNY store in Romania. THE LAUNCH OF THE AUTONOMOUS STORE Also, part of the event series was the launch of the autonomous PENNY store in Bucharest, where, during the inauguration, the technology inside the store was presented, showing how it works and opening the doors to a 100% digital and fast shopping experience.
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30 PENNY | REWE GROUP COMMA AWARDS 2024 was also a year of awards for two of our projects - 3RO and PENNY Points League, which were awarded at important communication competitions in the country: 3RO – Silver in the Corporate Communication Campaigns category at the COMMA Awards 2024 and PENNY Points League – Gold in the Sports and Entertainment category at the Romanian PR Awards 2024. Last but not least, we were present at numerous events in the summer and autumn of last year and got closer to communities from almost all regions of the country, as a provider of freshness at many cultural and sports events. Rocanotherworld, Gărâna Jazz Festival, Bucovina UltraRocks 2024, Danube Rock Sounds, Săptămâna Haferland, 3 Smoked Olives (3SO), Herbstfest, and Walk15 are the events where we brought a selection of our fresh, local products, alongside energetic colleagues who greeted participants at the PENNY corners.
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33 2024 was also an extremely active year in terms of our communication campaigns. Last summer, we once again supported the Romanian national football team in a moment of great joy and hope – qualification for EURO 2024. After years of waiting, we all welcomed with enthusiasm the news that our team would play alongside the best teams in Europe, and we had the opportunity to be part of this national frenzy. In the context of qualifying for EURO 2024, we launched a campaign through which we sent messages of support for the national team during the matches, regardless of the result, emphasizing that the Romanian football fans will always stand by the team. Through a partnership with Coca-Cola, we launched a promotion through which we offered double invitations to the grand final and hundreds of supporter kits. We then continued the surprises for fans and launched the Hai, România, la PENNY! loyalty campaign, which was met with real success. A symbol of this campaign became the yellow T-shirt available in PENNY stores, part of our loyalty campaign. The T-shirts were proudly worn by Romanian fans of all ages, uniting supporters in an explosion of color and passion. These T-shirts became a symbol of supporting the national team and national unity and went viral through numerous social media posts.
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35 PENNY Points league Last autumn, we successfully concluded the second edition of the PENNY Points League program, dedicated to football clubs for children, juniors, and youth from all over the country. Through the platform, registered clubs had the chance to receive digital shopping points from PENNY customers, which they converted into equipment necessary for training. PENNY Points League is more than just a program – it is a symbol of solidarity, of the impact we have when we join forces for a common goal. Over 45,000 sports equipment and accessories reached young footballers in Romania, with over 3.37 million points donated by PENNY customers during the campaign. 1,133 football clubs for children, juniors, and youth from across the country participated in the second edition of the program and placed 2,600 orders through the PENNY Points League platform.
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