Italy: PENNY to spend €200m on expanding network
- DRC Discount Retail Consulting GmbH
- 11 hours ago
- 2 min read
Discount Retail Chain PENNY Italia has revealed plans to invest €200 million over the next three years strengthening its discount model in the country. In 2026, the REWE-owned chain plans to spend €72 million, and a total of about €200 million by the end of 2028 adding new stores, refurbishing others, and upgrading its logistics infrastructure and warehouses. It also plans to review its private-label assortment.
“The group’s confidence translates into investments designed to drive growth and respond ever more effectively to the needs of our customers and our people,” said Arnd Riehl, who was appointed chief executive of PENNY Italia earlier this year.
Solid Growth
PENNY Italia recorded turnover of €1.68 billion in 2025, up from €1.64 billion in 2024. This has been helped by new store openings, modernisation initiatives and improvements in operational efficiency, according to PENNY.
With a network of about 460 stores and a market share of close to 6% in the discount sector, the company is ‘continuing on a path of solid growth, underpinned by positive like-for-like performance in 2026,’ it said.
Next, the discounter has planned ‘selective and sustainable’ expansion of the network, with 45 new store openings: 15 in 2026, in 2027 and in 2028. The latest opening being in Catania. About 70 other stores will undergo extensive refurbishment.
Private Label Overhaul
PENNY’s business model is based on safeguarding purchasing power, with private-label products playing a central role, according to the retailer. Own brands account for about 60% of turnover – amounting to over €950 million – and will continue to be strengthened through a plan to review and relaunch more than 1,000 products between 2026 and 2027.
Alongside price, the company continues to invest in the quality of its product range and service: fresh produce accounts for about 40% of turnover, while a network of staffed fresh food counters is present in around 60% of stores.
PENNY Italia’s positioning is also characterised by strong local roots, with 90% of suppliers based in Italy and about 75% of products ‘Made in Italy’, supporting a model that promotes the national supply chain and small and medium-sized enterprises.
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