Kaufland Hypermarkets
The relaunch of Kaufland Hypermarkets in Europe
The leading German player is blending a traditional ‘loyalty system’ with daily loyalty built around the low prices of discounters. The goal is to fortify its stores against the prevailing downturn in this format.
As per the official reports from Schwartz Gruppe, which encompasses both Lidl and Kaufland, the past year (2022) saw Lidl’s sales rise to €114.8 billion (a 13.8% increase), while Kaufland achieved a turnover of €31.8 billion (up by 16.1%).
At the close of the fiscal year, the German Group, with its 575 000 employees, oversaw a total of 13 700 retail points of sale (400 more than the preceding year), including over 1 500 hypermarkets under the Kaufland brand in Germany and Eastern Europe (Croatia, Czech Republic, Slovakia, Poland, Romania, Bulgaria, and Moldova). Schwartz Gruppe now commands an absolute leadership position in Europe, with a 5.3% market share.
Globally, its substantial volumes are surpassed only by the American retail behemoths Walmart, Amazon and Costco. Approximately 8 billion euros were invested last year in strategic digitalisation projects, primarily centred on refining the supply chain, expanding branches and modernising overall operations. These organisational advancements were driven by the ambitious aim of attaining an efficiency level capable of sustaining all operations, which has become even more imperative due to ongoing expansion strategies.
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