Penny’s ‘Markthalle’ discount concept in Germany

Penny in Germany introduced its marketplace store concept in 2021 and rolled it out nationwide until the end of 2023. The upgrade marketed as ‘Super-Discount’ differentiates against several times bigger competitors Aldi and Lidl by evolving stronger towards the supermarket segment.

Quicker shopping journey

The main element of the Super-Penny stores is the arrangement of the main product groups in U-shaped product worlds. This layout is designed to help customers navigate the store and speed up the shopping process.

Promotional items, which in the old concept were grouped together in a separate promotional area, are now displayed individually within the respective product group. Mobile shelves facilitate merchandising in the warehouse and then transport to the concept world.

Highlighted fresh and convenience ranges

At the store entrance, the fruit and vegetable department is set up as a marketplace with a main island and surrounding shelves. In parallel, the convenience-oriented Penny-to-go range is presented in a wall refrigerator under the brand name “Penny Ready”. Depending on the store location, this assortment is adapted on a modular basis.

The wall-mounted refrigerators at the back of the store house both the Butcher’s meat concept and the second Penny Ready refrigerator with ready-to-cook and ready-to-heat products. These include several dozen vegan products under the Food for Future label.

The convenience-oriented concept offers small packs of cold cuts and cheese in an open chiller under the name “Frische-Pack” (fresh package).

Organic assortment a key focus

The organic range under the Naturland private label comprises up to 500 items throughout the year, including promotional and seasonal items. By the end of 2025, the number is expected to grow to 600 organic items.

Developing into a niche

In 2023 Penny generated an estimated 9.5 billion euros net revenue in Germany. The average selling space of a Penny store is at around 740 square meters, significantly smaller than that of its discount competitors. The standard concepts of Aldi and Lidl are both at above 1,000 square meters.

The rollout of retail media screens is planned for half of the approximately 2,150 Penny discount stores. Electronic shelf labels are currently in the test phase.

At the entrance of the store Penny presents the spacious fruit & vegetable department in a marketplace arrangement.

Half of the around 2,150 Penny stores are to be equipped with retail media screens.

The first of two „Penny Ready“ wall chillers is located right behind the store entrance and offers chilled beverages, sandwiches and salads.

The store concept offers broad aisles, a better visibility of the product groups and allows for a quicker shopping journey.

The product worlds are arranged in a u-shape for better visibility from the main aisle. Promotional items are displayed on mobile shelves in the middle of each category.

In the back part of the store the discounter presents the second „Penny Ready“ chiller with ready-to-cook and ready-to-heat assortment.

In a dedicated open chiller branded „Frische-Pack“ (fresh packaging) Penny offers single-size packages of charcuterie and cheese.

Part of the assortment differentiating from channel competitors Lidl and Aldi is the „Food for Future“ range of vegan items.

Promotions from the fresh ranges are displayed in a compact red promo gate.

The wall chillers for the fresh categories feature energy-efficient double-doors.

Penny offers more than 500 organic products on average with plans to increase the total range by 20% within the next year.

On the way back towards the cash line the bake-off station features around 50 bakery items.

The Butcher’s concept comprises standard meat and poultry items as well as seasonal ranges.

On the way back to the cash line the department for frozen items is arranged as a concept world with a separate promotional unit held in red color.

The alcohol department, featuring wooden optics and dedicated lighting, is located right in front of the checkout zone and conveys an upscale image.

At the cash desks customers can purchase digital products next to the standard impulse assortment. Inventory-relevant items are displayed in a locked glass cabinet.