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Kaufland Germany has launched a private label range, K-to go. We look at what the range offers, how it will fit within Kaufland’s new store concept and strategy, and if it gives the retailer an edge against the competition.

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Kaufland Slovakia is testing a happy-hour discount scheme, and Kaufland Poland rolls out an apparel private label for children.

Kaufland Slovakia discount in evening shopping…

Kaufland Slovakia is testing a discount scheme that takes place between 17:00 and 21:00 and Monday to Wednesday. The scheme offers shoppers 10% discount on their whole shopping but excluding tobacco products.

…to increase traffic and limit food waste

The happy-hour scheme has a dual benefit for the retailer. First, it will help drive traffic to Kaufland stores in the evenings. Secondly, it will cut food waste by selling perishable items at a reduced price. No announcement by Kaufland Slovakia was made about how long this scheme will last. Spokesperson for the retailer, Lucia Langová, stated that they will “keep analysing and assessing this action”.

Kaufland Poland adds baby clothing private label range

Kaufland Poland has introduced a new baby clothing private label, Kuniboo, to its stores. The range was created for children up to 4-years-old. Kuniboo clothing will be packaged in paper and cardboard boxes, avoiding single-use plastics. This move is a part of Kaufland’s strategy to expand its private label range. Earlier in 2018, Kaufland introduced a personal care private label, Bevola.

Source: Kaufland Poland

 

Subscribers can find out more about Kaufland’s trading priorities and latest news on Retail Analysis.

Kaufland Slovakia launched a locally sourced private label range under the name ‘Z lásky k tradícii’ (From love to tradition). Kaufland Slovakia’s spokesperson, Lucia Langová, said that ‘the project was to mimic the Romanian concept 'K-Vreau din România' that was launched November 2017.

'Z lásky k tradícii’ is local and quality

The ‘Z lásky k tradícii’ range obtains traditional Slovak products from regional suppliers. The range currently focuses on dairy products – yoghurt, milk, and kefir - and are made from raw materials sourced domestically. They are sourced from grass-fed and free-range cattle bred in the northern Slovakian mountains.

Source: Kaufland Slovakia

Kaufland Slovakia invested in a local dairy supply chain

Kaufland Slovakia had to develop a local dairy supply chain before launching its ‘Z lásky k tradícii’ range. In 2015, the retailer tried to showcase its local sourcing credentials via it ‘Z lásky k Slovensku’ campaign (From love to Slovakia). However, there was a gap in the market for consistent supply of local produce. The supply chain needed to grow and guarantee a level of product supply and quality assurance. Since 2016, Kaufland Slovakia cooperates with regional suppliers by providing training on product quality assurance and packaging. The retailer also supported suppliers to increase their production capacity.

Kaufland is likely to add more locally sourced ranges

Kaufland is filling in a gap in its private label portfolio by adding locally sourced ranges in Romania and Slovakia. This is an area where it did not have much focus on when compared to its competitors. This makes sense for the retailer as support for local producers and promotion of traditional dishes may well resonate with shoppers. Kaufland Slovakia’s support of a local supply chain guarantees a consistent stream of locally sourced products and keep logistical costs under control. Kaufland is then likely to invest more in small and medium-sized producers and add locally sourced ranges in its other country operations.

For more insight on local sourcing and other global retailing trends, see our presentations Global retail outlook 2018 and Local sourcing in Europe (for subscribers).

Single-use plastics is a growing concern in the grocery retail industry due to its environmental impact. We are seeing increased activity in the retail and FMCG sector to reduce single-use plastics in-stores, and Kaufland is one of the latest retailers to make such a commitment.

 

Kaufland announces strategy to reduce plastics by 2025

Kaufland alongside its sister company, Lidl, launched a comprehensive 360-degree strategy to reduce single-use plastics in their stores by 2025. The retailer aims to:

  • reduce consumption of single-use plastics by at least 20% by 2025
  • increase share of recyclable packaging in private label to 100% by 2025
  • delist selected plastic items, such as straws, until the end of 2019 and offer alternatives

Kaufland will apply three core tactics in reducing single-use plastics in-store. Use of alternative packaging, increase share of recyclable products, and make some ranges or categories plastic-free.

 

How will Kaufland implement its 360-degree strategy?

The 360-degree strategy has a three-prong approach to reducing single-use plastics in-store.

  • Educating shoppers to adopt environmentally responsible consumption behaviour, by informing them about alternatives, causes, and recycling.
  • Set up a recycling infrastructure in and around Kaufland stores such as collection points, self-service recycling machines, and rewarding them with discount coupons.
  • Work with the suppliers to reduce SKUs with single-use plastic packaging and encourage use of sustainable packaging.

 

For more insight to this topic including shopper views, retailer activity and industry innovations in the UK, see our presentation UK action on plastic.

 

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Presentations

01/08/2018
An essential summary of trading priorities, latest developments, and other key commercial insights for Kaufland.
01/08/2018
Kaufland has been rolling out its new store concept since 2017. The new store design aims to grow traffic and basket spend. Following our visit to the Kaufland Romania flagship store in November 2017, we returned to Bucharest in May 2018 to see which features are being implemented in new and remodelled stores.
23/07/2018
In this insight presentation we look at the EMD buying group, its members and strategy.
View all presentations

Key presentation

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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