German Retailer Follows Wal-Mart's Lead, Cutting Prices

COLOGNE, Germany (9 February 2000) -- As a price war heats up among German retailers, Europe's largest supermarket chain, Rewe, is going on the offensive, reports the Associated Press. Over the next two weeks Rewe will introduce what it calls permanent bargain prices at more than 1,800 of its stores. The move comes in the wake of the arrival of US retailer Wal-Mart Stores Inc., which announced another round of price-cutting at its 95 discount stores in Germany last month. Rewe will also stop rotating sales on specially selected items and slashing prices across the board on its total inventory. To complete the reorganization, the store will close all of its stores today and reopen them next week. "Through discount pricing, our customers will save not only time but money when they shop at our branches,'' said Rewe head Hans Reischl, adding that the new structure will give employees more time to serve customers. (JW)