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Schwarz Group has reported a strong sales grow of 7.4% to EUR96.9 bn in the financial year 2017/2018 driven by the performance of Lidl. Lidl’s revenue grew by 8.8% to EUR74.6 bn, while Kaufland’s sales grew by 3.0% to EUR22.3 bn.

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Kaufland adds a new private label range in Germany to differentiate its price offer from discounters and supermarket retailers. It also added a pop-up restaurant in Romania to attract young shoppers and engage them with fresh food and cooking. The retailer also invested in an automated warehouse in Poland to reduce the growing pressures on its distribution network.

Kaufland adds ‘Favourite’ private label range

Kaufland introduces a new private label range under the name ‘Favourites’ in Germany. The new private label range will supplement the price entry and premium ranges - K-Classic and K-Exquisit - and aims to boost private label sales growth. According to Kaufland CEO, Patrick Kaudewitz, 3,800 'Favourites' products will be initially introduced at a standard price point, which will add another price tier to Kaufland's private label offer. Mr Kaudewitz makes the point that Kaufland sits between Edeka and Aldi and is “a hybrid between a full-range retailer and a classic discounter, and the customer can rely on a particularly good price-performance ratio.”

Kaufland Bulgaria re-introduces premium K-Exquisit, temporarily

Over 50 K-Exquisit products were re-introduced to Kaufland’s assortment in Bulgaria in mid-March. The range is not part of the constant assortment and was added for a period of two weeks. Kaufland looks to keep its assortment fresh with the introduction of temporary ranges amongst its smaller country operations, such as Bulgaria, to build brand equity and shopper awareness of its private label offer.

Kaufland Romania adds PopUp! restaurant

Kaufland Romania introduced a pop-up restaurant to its Bucharest at the Si Lounge. The restaurant offers a choice of affordable meals where the customers pay only for the ingredients, sourced from Kaufland stores. The concept has a regularly updated menu and will change location after two months. The pop-up restaurant intends to engage and inspire young shoppers with fresh food and cooking. According to Valer Hancas, spokesperson for Kaufland Romania, Kaufland ‘has become more than a place to shop it is a phenomenon that builds out of patterns, inviting reinventing, connecting and meeting newer and sophisticated needs of buyers.’

Source: www.popuprestaurant.ro

Kaufland opens automated warehouse in Poland

Kaufland expanded its distribution network with the launch of an automated warehouse in central Poland. The warehouse is considered one of Kaufland’s most modern facilities of this type in Europe. The investment is a response to market needs to process distribution orders more efficiently and with a higher turnaround. The new warehouse is equipped with automated picking stations that run at a rate of 500 to 600 packages per hour. This is a threefold increase in the internal flow of goods in the warehouse.

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Amin Alkhatib, Retail Analyst CEE, IGD International: based in London, UK, Amin is responsible for shaping IGD's research in Central and Eastern Europe; as well as contributing to IGD's broader European research programme. Follow me on Twitter @Amin_IGD for further insight on the region’s retail landscape.

Kaufland has appointed Mark Hewlett as its new COO for Australia.

Strong CV with new business development

Mark Hewlett brings significant discount and Australian retail experience to the new role. Having worked for both Lidl and then Aldi in operations, property, logistics and commercial roles in the UK, Hewlett moved to Australia in 2012 to work for Woolworths. At Woolworths he was responsible for developing the retailer's convenience business, instigating its Metro stores programme, which today is driving double digit like-for-like growth. While for the past four years he has headed up new channels and retail operations at Metcash, helping the business enter China via its partnership with Alibaba, as well as working with independant retailers to improve their in-store operations.

First big name to lead Kaufland down under

The appointment is the first significant appointment by Kaufland in Australia, as it looks to start developing a leadership team towards launch. Last month, the business started advertising for senior commercial roles, signalling an advance towards setting up its supply chain. We know that Kaufland has already purchased sites for stores in Adelaide and Melbourne, while has set up its HQ in Victoria. Kaufland's offer will be clearly differentiated versus other retailers in the Australian market to date and with history showing Australian consumers liking the variety that Costco and Aldi have brought to the market, we will watch Kaufland's developments with some interest.

What to know more about Kaufland? 

Kaufland's parent-company Schwarz Group is Europe's largest grocery retailer, trading under the banners of Kaufland and Lidl. Despite this the banners operate as seperate companies and are very different. To understand more about Kaufland:

  • Check out our Kaufland page on Retail Analysis - here  
  • Ask IGD to deliver a presentation about Kaufland, its strategy, stores and what your category looks like - get in touch

 

 

 

Jobs adverts show that Kaufland is building its resource in Australia, with new commercial team roles being advertised.

Head of roles will be able to shape their own departments

The new roles advertised include heads of purchasing for produce, fresh food and non-perishable food, plus a store planner and head of marketing. The adverts mark a significant step on in Kaufland's planning for an Australian launch, having previously been recruiting property professionals and a head of buisness intelligence. It is belived that the new head of roles will allow the successful candidates to build their own teams and departments.

When might Kaufland launch in Australia?

Kaufland has been building its team in the market throughout 2017 and has started to secure sites. The first two sites are in Melbourne, where Kaufland has also set up its head office, although it has been clear that it is also exploring opportunities in other major cities. Given the lead time to build stores, plus assemble its commercial team, a 2018 launch would likely be towards the end of the year, with 2019 a more realistic target. However, suppliers wanting to capitalise on this new entrant should already be rapidly upskilling themselves in their operations.

Next steps...

  • To understand how IGD can help upskill your team on Kaufland please get in touch - [email protected]
  • Alternatively as a starting point, check out our Kaufland page on Retail Analysis - here 

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