Kaufland retail and digital expansion

Kaufland has pursued growth through both digital and physical channels. The retailer launched its online marketplace in Spain, adding to its presence in nine European countries. This digital expansion aims to provide a European alternative to global e-commerce giants by offering millions of items through a network of over 15,000 merchants.

Simultaneously, the company has expanded its physical retail footprint in Germany to more than 790 stores, supported by previous acquisitions of Real locations. Alongside store growth, Kaufland has scaled its internal production capabilities, particularly in meat processing, to supply its branches and restaurants.

In an effort to further integrate technology into the physical shopping experience, Kaufland is currently testing digital shopping carts in select German markets, including the Rhine-Main region and Baden-Württemberg. Utilizing a solution from the Chinese provider Super Hi, the system equips carts with a tablet and handheld scanner. Customers can use their Kaufland-Xtra-Card to activate the devices, which allow for scanning packaged goods, weighing loose produce, and scanning digital price tags for bakery items. Completion of the process involves paying via a QR code at a self-service checkout.

Despite expert questions regarding the long-term viability of the hypermarket model in Germany amidst competition from discounters, Kaufland reports it is on a “stable growth course,” citing increases in turnover and customer frequency in the previous fiscal year.