Supermarket chain Kaufland will not implement daytime service in branches starting from autumn 2025.
In a bid to attract customers amidst the rising cost of living and intensifying competition in the German supermarket industry, Kaufland, a leading German discounter, has announced a strategic initiative. This move involves securing prominent locations, expanding store presence with modernized formats, and enhancing tenant mix in shopping centers where it operates.
The first signs of this strategy can be seen at the Rhein-Ruhr Zentrum in Mülheim, where Kaufland has been brought in as a major new tenant, signaling an expansion into targeted shopping centers with strong middle-class customer bases. This approach, which leverages location optimization, aims to attract steady customer traffic despite the challenging market conditions.
Kaufland's strategy also benefits from the robust logistics, supply chain innovation, and a strong private-label strategy of its parent company, the Schwarz Group, which also owns Lidl. While specific details about special pricing campaigns or unique promotional initiatives were not identified, Kaufland's expansion into key retail spaces combined with an emphasis on operational excellence and competitive pricing represents their strategic response to the challenges of inflation and increased competition.
In a separate development, Kaufland is also introducing its own catering brand, Mangal, into its branches for the first time. From autumn 2025, selected markets will open Doener restaurants under the Mangal brand. Larger areas with seating are planned, where customers can eat directly or take away the Doener.
The cost of grocery shopping has significantly increased for many Germans, with this turnover representing an almost 30% increase compared to 2019. Consumer prices in the country rose by an average of 2.0 percent in July compared to the previous year, and although the rate of food inflation has slowed recently, many products are still around 30 percent more expensive compared to 2021. The price increases are particularly challenging for those with limited budgets.
As a result, many consumers are feeling the effects of rising living costs and have to dig deeper into their pockets. Supermarkets and discounters are currently competing for new customers, with the strong sales growth of discounters coupled with increased pressure to offer attractive prices.
While the specifics of Kaufland's unprecedented measure are not detailed in this paragraph, the focus on securing premium store locations and enhancing tenant mix in shopping centers, coupled with Schwarz Group’s infrastructure investments, stands out as Kaufland’s main move to maintain and grow its customer base under current market pressures.
[1] Source: Supermarket News [4] Source: Retail Detail
- In an attempt to cater to customers facing increased living costs and competition, Kaufland, leveraging its parent company Schwarz Group's infrastructure and private-label strategy, is focusing on securing premium store locations in targeted shopping centers, aiming to maintain and grow its customer base.
- To further enhance customer experience and attract more business, Kaufland is diversifying its offerings by introducing its own catering brand, Mangal, into its branches, starting from autumn 2025, offering customers the option of dining in or taking away Doner meals at selected markets.
