“Cooperatives are more relevant than ever”

Thomas Nonn: Even when we were founded, independent entrepreneurship was the core of REWE Group – and it has remained so to this day. Back then, the wholesale cooperatives formed the basis for what we are today by bringing together independent retailers. These retailers became indirect owners of the Group – a principle that continues to shape our business today. And no matter what has changed externally, one thing has always united us: our strong, cooperative values.

Thomas Nonn: Cooperatives know how to think outside the box – they don’t think from one day to the next, but in generations. A look at our regional cooperatives shows this very clearly: some are over 100 years old and therefore even older than our REWE headquarters. Their focus on long-term action is impressive and closely linked to the values that characterize cooperative companies. These values have never changed over time – no matter what has happened, they have always been there, sometimes more, sometimes less visible. For more than 15 years, we have been working intensively on the values that significantly influence our cooperation within the cooperative. But in the end, it always depends on the people who live these values every day.

Thomas Nonn: Sustainability, for example, is in the original DNA of cooperatives. We want to shape independent livelihoods in such a way that they are preserved for generations to come. Our corporate culture is characterized by stability, trust and cohesion. But the cooperative structure also inherently brings with it a fair amount of responsibility – towards each individual and the organization as a whole.

Thomas Nonn: We work with many of our independent retailers across generations. At the same time, our employees at REWE generally work for the company for a long time. This combination creates stable relationships that strengthen our culture of values. And in the end, it is above all the continuous translation of values into everyday working life. It is important to us that we keep talking to each other. Sometimes this means that we have to find new words for what we live by on a day-to-day basis, but the core of our values never gets old.

Thomas Nonn: In a time of permanent crises, cooperatives offer answers to many of the burning questions of our time. They stand for consistency and stability. Unlike listed companies, which constantly feel the pressure of quarterly figures and have to keep the share price up, we as a cooperative are committed to our members. This gives us more freedom to position our company sustainably – and we are often much more innovative than people generally think. We are at the forefront of digitalization in retail, for example, and the same applies to Sustainability. You can really make a difference with us – I believe that if young people were aware of the benefits, cooperatives would be much more in demand as employers. Our greatest strength is the community that you can feel when you become part of our team. That’s why it’s crucial to give young talent the chance to get a taste of REWE and experience this unique culture.

Thomas Nonn: That’s right. With regard to self-employment, we also want to attract both colleagues and externals to set up their own businesses. To this end, we have developed models that are attractive in terms of Business Administration. At the same time, becoming self-employed with us is something that requires knowledge in many different specialist areas, such as merchandise, human resources, marketing, purchasing and much more. This is also an exciting prospect for those with a Bachelor’s or Master’s degree, especially in comparison to a specialist position. The way we cultivate, develop and understand this independence in the cooperative spirit is something special. For me, independence at REWE is a value in itself.

Thomas Nonn: There is a misconception associated with what you have said. A cooperative does not mean that we are practising grassroots democracy, but that we have to create structures in which we remain capable of acting. For example, our structures allow us to incorporate know-how from the markets into management decisions. There may be one or two more coordination loops than in a family business, but thanks to the coordination with retailers, we have a much higher acceptance of implementation. In all my years at REWE, I’ve never had the impression that we don’t manage to achieve the necessary speed depending on the situation. For me, this is a question of organization and culture. Of course we discuss things, which is often necessary in order to shed light on all facets. But when it comes to taking an issue to the streets, I don’t think we’ve ever lost time unnecessarily.

Thomas Nonn: Things are looking good! We currently have over 300 junior candidates in the pipeline who are undergoing training to become a commercial clerk and are waiting to apply for an advertised position. And we are constantly adding new candidates. The majority of our new retailers are former store managers. We are also opening up new channels. For example, we are preparing young people with an academic degree for self-employment in a two-year trainee program. Retailers also have the opportunity to offer high school graduates a dual study program in their company. They get to know the practical side in the store, study on the side, obtain a generally valid university degree and thus embark on the path to self-employment with REWE. Then there are also interested parties who come from a sales function at REWE and also those who approach us from outside. And, of course, there are also junior staff from the retailers who are interested in taking the step into self-employment. In short, the pool is well filled.

Thomas Nonn: We have various cooperation models: First and foremost is the REWE partnership model. However, we also offer self-employment in a franchise model. A key anchor in the philosophy of the partnership model is that a lack of capital should not be an obstacle to suitable applicants taking the step into self-employment. There is no better entry model for self-employment than ours, because it limits capital requirements and risks to a level that cannot be found anywhere else. An attractive model, combined with successful sales concepts, is the prerequisite for finding good applicants for self-employment.

Thomas Nonn: In Germany, we have gained a lot of positive experience in working with independent retailers in recent years. In this respect, it was only logical to consider whether a similar model with BILLA could also be something to improve the competitive position in Austria. Privatization is not an end in itself, but a Business Administration success factor. We have the advantage of being able to draw on experience from Germany. Of course, there are national peculiarities to consider. We have succeeded in developing a model that will be successful in Austria. We want to increase the number of independent BILLA retailers to 45 by the end of 2025.

Thomas Nonn: No, not yet. But there are considerations, if there is a relevant number of BILLA retailers, to bring them together in a cooperative structure.

Thomas Nonn: We are constantly developing innovations and new formats, such as the stationary pet specialty stores under our ZooRoyal brand. This concept is exclusively reserved for our independent retailers. So there are always opportunities to expand our range.