We visited Kaufland stores in Krakow, Poland, to look at its latest developments in the country. We were impressed by the initiatives it was taking to create a more relevant range for shoppers and to help it differentiate itself from the competition.
1. Retailer partnering with start-ups to develop new products
Kaufland allocated a gondola-end for new product developments from several start-up companies. This is part of its incubator Startup initiative. It illustrates the retailer’s keenness to support new product developments by helping small suppliers launch products in the market. Keeping in line with its sustainability initiatives, the range included eco-friendly laundry detergent, Sansin, bamboo toothbrushes and reusable sanitary products by Loffme.
Source: IGD Research
2. Extending private label lines
The Bevola private label began as a personal care-focused range, but now extends into the baby category. Kaufland has also rolled out standard-priced own brand Favourites in pet care and extended healthy range Take-it veggie and K-free to compete with brands.Source: IGD Research
3. Premiumising its range
The retailer is using both ranging and category management initiatives to improve shoppers’ perception of the quality of its range. One way it is doing this is with a premium dry-aged meat offer at the fresh meat counter. It has also refreshed the whisky category with an aisle design that illustrates a premium ‘look and feel’. It does so by using a black glossy look and digital screens to attract and engage shoppers around brand selection.
Source: IGD Research
4. Support the main shop mission with a wider non-food offer
There is a strategic move to enhance its range to become more of a one-stop shop retailer. It is helping shoppers achieve more from their shopping missions by adding relevant non-food categories, such as eye ware, magazines and electronic accessories. This indicates the retailer’s interest in adding new categories to attract further shopper spending.Source: IGD Research
5. Showcasing the food-to-go and ready meal offer
Placing the food-to-go category near the front of the store means it is one of the first packaged food ranges shoppers come across. Relatively high footfall in this section will help raise awareness of the category. A wide and strong assortment of ready-to-eat and ready-to-cook meals, with local and international dishes, are available.Source: IGD Research
6. Helping shoppers eat and live healthily
The Aleja Zdrowa ‘Healthy Aisle’ and fitness accessories sections are located near each other. Kaufland offers shoppers several free from and organic foods alongside sport supplementary products and apparel. By bringing the ranges in close proximity to each other, it is positioning itself as a health-focused retailer.Source: IGD Research
Subscribers wanting to find out more about retailer’s strategic priorities can look at Strategic outlook for Kaufland.