Germany’s competition authority, The Federal Cartel Office (Bundeskartellamt), has approved Kaufland’s acquisition of some Real stores in Q4 2020. By taking over these stores Kaufland is improving its purchasing position in the country.
Acquisition of 92 Real hypermarkets approved
Kaufland’s acquisition will see it acquire 92 of the 101 Real hypermarkets it applied for originally, although they are subject to certain conditions. The reason for the nine other stores were not approved to be acquired was that competition in these locations would be impacted.
The 92 Real stores are distributed across Germany and will enable Kaufland to boost its market penetration with little impact on competitive levels in anyone part of the country. The stores will gradually be transferred to the Kaufland banner during Q1 2021, with the 12,000 staff to be kept on as Kaufland employees. Ralf Imhof, Kaufland Germany’s chief executive, said:
“This is a good and important decision for the employees, customers and markets. We offer Real employees a new professional perspective and look forward to continuing to operate the stores successfully together with them.”
Further Real stores sold to Globus
The competition authority also approved the acquisition of 24 Real stores by Globus, one of Kaufland’s main competitors in Germany’s hypermarket grocery channel. Meanwhile, Edeka is waiting for approval from the competition authority for the takeover of 72 Real stores. The decision is expected to be made in February 2021 at the latest.
Real.de marketplace will be part of Kaufland’s core offer
Rolf Schumann, Board Member for Digitization at the Schwarz Group (Kaufland’s parent company) announced that its recently acquired German marketplace, real.de, will be “an essential component of our future offer”.
The retailer will transfer the platform to be under the Kaufland banner and run it alongside the store network as a complimentary online service. It will expand the range of non-grocery products for shoppers and create more opportunities for bigger or new trade partnerships with suppliers.
Kaufland expands online offer in Poland
Separately, Kaufland’s partnership with Everli in Poland will provide shoppers with the option to place a grocery order and have it delivered in three hours. As of January 2021, shoppers can buy from Kaufland online in six further cities, taking the number to 17 urban areas. Orders are processed in-store and are delivered to shoppers living within a radius of eight kilometres.
Kaufland shoppers can choose from over 4,000 products to buy via the Everli platform or mobile app. The standard delivery cost is PLN9.90 (US$2.63), and orders can be made seven days a week between 08:00 to 23:00. The service offers shoppers the option to place an order up to a week in advance.
Subscribers can read more about Kaufland’s strategic priorities in our insight presentation.