Return of Kaufland’s own-online business

Date : 05 March 2021

Amin Alkhatib

Senior Retail Analyst

Kaufland has re-entered the online channel following the acquisition of Real's marketplace, instead of creating its own one. The retailer’s return to the online channel looks to establish its presence for the long term, building on Real’s existing success. This should help Kaufland differentiate this initiative, from its previous entry and exit from the channel in 2017, when it found online to be a challenging venture.

Real.de to be merged into the Kaufland brand…

For the first time since Kaufland’s acquisition of Real.de in October 2020, the Kaufland banner will be visible on the site. This is part of the step to integrate the operation into the Kaufland.de site, which is planned to take place in April 2021.

Source: Kaufland

The beginning of Kaufland’s omnichannel offer

Kaufland’s acquisition of one of Germany’s largest online marketplaces means it will have access to more than 5,000 suppliers. This substantially increases the retailer’s online SKU count and will help it offer shoppers more choice, along with a convenient way to buy. In Q1 2021 shoppers can choose from over 25 million products, which includes over 300,000 items that are sold directly by Kaufland. The retailer has committed to expanding the range further expanded.

Schwarz Group’s chief digital officer, Rolf Schumann, said, “The integration on kaufland.de is the starting shot for us to inspire our customers in the brick-and-mortar trade with the offers on our marketplace”. Shoppers will be able to seamlessly shop both the retailer’s online and in-store offer.

Suppliers benefit from access to Kaufland’s growing ecosystem

Schumann explained that “As the next step, we are planning to expand customer and dealer services”. Integration of Real.de into the Kaufland retail ecosystem will help Kaufland grow its shopper base, therefore, potentially boosting volume sales on the site.

Source: Real.de

The retailer will also continue to help sellers grow their business with financial, marketing and sales support through the Seller University.

Kaufland gains from a ready-made online set-up

The difference between this approach to entering the online channel, when compared to 2017, is that Kaufland has acquired an existing and successful presence in the channel. By purchasing an up and running business with an already established shopper base and volume sales it could begin working on improving the business’s profitability.

In 2017 the retailer exited due to concerns over profitability and growing competition in Germany’s online grocery channel. Now with this platform Kaufland will be able to strengthen two of its strategic priorities, to enhance its range relevance and develop its online presence.

Subscribers can read more about Kaufland’s strategic priorities in our insight presentation.