Rewe owned discounter Penny is searching for sites as small as 400-500 square metres in residential areas in Germany. The move coincides with its investment in refurbishing all its stores under a new proximity led discounter offer, focusing on convenience and fresh.

The average discounter store is over 800 square metres and is designed to minimise manual stock handling by placing pallet items direct from delivery to the sales floor. Penny’s main issue will be handling these increased costs that arise from small stores. This has seen them develop own brand food to go ranges and a renewed focus on high margin fresh products.