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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.

K-to go offers a wide assortment

K-to go was launched with the tagline ‘the new pleasure in snacking’. The range has an assortment of more than 50 SKUs, including sandwiches, cereals, salads, sushi, juice, pre-packaged coffee, and milk shakes. Although Kaufland Germany offers a 20% discount on the range for a limited time, no meal deal offer has been launched yet.

Source: Kaufland Germany

K-to go targets meal missions

Kaufland Germany illustrates how K-to go offers shoppers a combination of products for a range of food-to-go missions. A marketing campaign inspires shoppers to select items most relevant to their chosen meal mission during working hours.


Source: Kaufland Germany

K-to go is made for professionals and millennials

Kaufland designed the range to attract time-poor professionals and millennials. Products such as pre-packaged cereal and milk, or pre-packaged cold coffee, are a convenient solution for office workers. Whereas, the packaging design and colour scheme resonates with millennials.

K-to go supports Kaufland’s new store concept…

Kaufland is rolling out foodservice concessions and food courts in its new store concept. The retailer wants to raise the destination appeal of its stores and attract shopper spend from the foodservice market. K-to go’s focus on food-to-go missions supports this strategy.

In addition, Kaufland’s new and efficient store layout will help shoppers better navigate toward the K-to go range. The roll out of new self-service checkouts will also enable shoppers to check out quickly.

…but Kaufland locations are a disadvantage for food-to-go

Food-to-go commonly sells well in high footfall or densely populated areas. Kaufland’s key competitors have smaller stores with high penetration in city centres. Whereas, Kaufland stores are commonly located outside of city centres, which means limited access to the professional and millennial shopper base.

Kaufland food-to-go is behind the competition

Private label food-to-go is not new to the German market. Kaufland’s sister company Lidl launched its own food-to-go range, Lidl-to-go, in 2017 as part of the new store concept. Germany’s top five retailers already launched their own line of food-to-go in 2016 and 2017, such as Edeka Deli and Rewe’s Penny-to-go. Since Kaufland is catching up with its competitors, the next step for the retailer could be the launch of a meal solution range, like Lidl’s Kochboxen.

To keep up-to-date about Kaufland’s trading priorities and latest news see our profile on the retailer.

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).

Presentations

17/10/2018
An essential summary of trading priorities, latest developments, and other key commercial insights for Kaufland.
13/09/2018
We examine the latest retailer performance in Australia, as well as review the major trends that we identified at the start of 2018.
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.
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