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Kaufland has recieved planning permission for its first three stores, distribution centre and a new HQ in Australia.

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Schwarz Group has invested a further AU$145m into Australia, as it continues its plans to launch Kaufland.

New investment cements long-term commitment

The additional invetsment means that since 2017 the business has invested AU$325m into the set up of its business in Australia. Kaufland is currently recuiting for area managers and according to local press has started hiring staff for six provisional stores across Melbourne. A Kaufland spokesperson was quoted as saying, “This capital increase reflects the importance and long-term commitment to our expansion. It marks our continual investment in Australia both now and for the future, through the creation of jobs, competition and opportunity”. 

Intention clear, launch date less clear...

Kaufland's activity in Australia is well known, with a statement on its website saying, "With our Australian headquarters based in Melbourne and state offices in Brisbane, Sydney and Adelaide, we are well positioned for growth and establishing high performing teams to deliver stores that offer a wide range of competitively priced fresh, grocery and non-food items." Despite this,  it is still unclear on exactly when the first stores will open. Given time to establish product supply, build teams and construct stores, we estimate that the first stores will open in early to mid 2020. 

The German retailer is adding new private label ranges, entering new categories, and raising the profile of its fresh food offer. It is also launching a new ranging strategy to give shoppers more choice and with sustainability in mind. We look at some of the latest initiatives it has launched, so far, in 2019.

Kaufland is doing good with new sustainable food range…

Kaufland is offering more than 150 Demeter and Campo Verde products in its stores in Germany. It will expand the range to 200 by the end of 2019. Demeter International is one of Germany’s key organic food and sustainable land management associations. It is famous for the high standard of its sustainable farming, which exceed the government’s own regulatory standards. The addition of the Demeter range is helping Kaufland to raise its quality credentials and to be more vocal about its supply chain sustainability initiatives.

Source: Kaufland Germany

…and reducing food waste with promotion of misshapen fruits and vegetables

Kaufland is offering shoppers imperfectly shaped fruit and vegetables to reduce food waste. The products are offered at lower prices than in the core range and are available under the slogan Die etwas anderen (The somewhat different). This follows similar initiatives by other retailers, such as Tesco, in 2017, with its Perfectly Imperfect campaign.

Source: Kaufland Germany

Kaufland continues to grow its private label apparel range…

Kaufland added a new private label adult sportswear range, Newletics, across its European stores in January 2019. It also launched its own casual wear labels Oyanda, for women, and Townland, for men, in its stores in Germany. This follows the pan-European roll out of its children’s apparel ranges, Kuniboo and Hip&Hopps, in 2018. Oyanda and Townland are certified according to the Global Organic Textile Standard, which ensures the sustainable production of textiles and socially responsible manufacturing.

Source: Kaufland Germany

…and adds edible insect products in snacks category

French-based edible insects snacks manufacturer, Jimini's, products are now available in Kaufland stores in Germany. The selection offers shoppers insects in the form of noodles, cereals and bars and in various flavours. The brand is comparatively sustainable, due to the lower impact the production process has on resources, and healthy, due to the products’ high protein content.

Source: Kaufland Germany

Subscribers can read more about Kaufland’s strategic outlook in our insight presentation.

We recently visited Kaufland’s store located north of Stuttgart. From our visit we observed five strategies the retailer is employing to raise shopper perception by making its range relevant to shoppers and giving them something different.

1. Extensive use of ‘new’ product signage emphasises choice

Categories such as oral care, personal care, confectionary, and snacks had several signs spotlighting newly added products. Its extensive use aims to raise shoppers’ perception that there is more choice. This initiative is also a reflection of Kaufland’s range review strategy to extend branded lines and add new or extend private label ranges.

Source: IGD Research

2. Digital screens activating promotions

Digital screens are in various locations throughout the store. They spotlight price promotions, new products, or showcase the extensive fresh food range. The screens change at regular intervals to display the various marketing initiatives. The versatility of the displays help boosts shoppers’ awareness of promotions.

Source: IGD Research

3. Attractive aisles make for attractive products

The confectionary category has a distinct and smart aisle-end design that appeals to shoppers. Lights display the words ‘Entdecken sie unsere schokoladenseite’ (Discover our chocolate side) on the floor and further draw attention to the area. The marketing capitalises on the seasonal relevance of confectionary in the pre-Christmas period when we visited.

Source: IGD Research

4. Spotlighting brands with eye-catching displays

Lindt uses POS material to showcase its seasonal chocolate range. Lindt promotional material is located opposite the fresh bread section to capitalises on the traffic the latter draws. In the make-up aisle, Kaufland has installed a mirror to encourage shoppers to try out the L’Oreal and Maybeline products. The intention is to encourage them to linger in the category for longer and engage with the products.

Source: IGD Research

5. Creating a space for food-to-go

Kaufland dedicates space to its own food-to-go range, K-to go, which is located next in flow from the fresh food section. Fresh is a key category for German shoppers, which will draw traffic to the K-to go chiller and raise its visibility. By having top-up categories, such as bread, nearby will help the range support shoppers’ impulse missions.

Source: IGD Research

Why Kaufland is one to keep an eye on

Kaufland is building a more relevant and differentiated model for shoppers. By using signage to promote range extensions it gives shoppers the sense of wider choice. New categories such as food-to-go build on the shopping missions it is looking to target. The use of digital technology helps activate promotions, and so maximises marketing impact. The retailer is also differentiating its offer with distinct and premium-looking aisles and by working with suppliers to effectively spotlight brands using merchandising and displays.

Subscribers wanting to see how the retailer is evolving its in-store environment can review our latest Kaufland store visit in Romania.

Presentations

07/03/2019
An essential summary of trading priorities, latest developments, and other key commercial insights for Kaufland.
25/02/2019
This in-depth guide to Romania explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.
25/02/2019
This in-depth guide to Croatia explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.
View all presentations

Key presentations

Kaufland is building a more relevant offer for shoppers, which differentiates it from rivals, while maintaining control of costs and driving efficiency. In this report we look at its key strategic aims and the strategies being rolled out in its top four markets.

This in-depth guide to Germany explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.

An essential summary of trading priorities, latest developments, and other key commercial insights for Kaufland.

We've developed a single, universal methodology for calculating food and consumer goods retail data, supported by our programme of primary and secondary research. This makes Retail Analysis the most reliable and robust source available for data of this type. 

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We've grouped all the latest European retail news, store visits, retailer profiles and downloadable presentations together in one place.