A new German superstore that is coming to Australia is planning to revolutionize the way we shop and could reduce prices by as much as 15 percent.
Kaufland, described as a cross between Coles and Target, will open 40 stores across the country from 2021 onwards.
Designed as a one-stop shop, the hypermarket sells groceries as well as hardware such as toys, bicycles, sporting goods, electronics and household items.
The Kaufland model is based on an extensive range and depth of products sold at low margins.
Retail experts predict that the Coles and Woolworths chain could undercut five to 15 percent.
Kaufland, described as a cross between Coles and Target, will open 40 stores across the country from 2021 onwards
Designed as a one-stop shop, the hypermarket sells groceries as well as hardware such as toys, bicycles, sporting goods, electronics and household items. Pictured: in a store in Europe
The Kaufland model is based on an extensive range and depth of products sold at low margins. Pictured: in a store in Europe
& # 39; We expect a price war & # 39 ;, retail consultant David Walker told Daily Mail Australia on Monday.
& # 39; I don't think Kaufland will quietly come on the market, they will be very aggressive because price cuts are their game & he said.
& # 39; It is difficult to predict how Coles and Woolies will react, but Australian consumers will certainly benefit from the increased competition & # 39 ;.
Market share in supermarkets
Woolworths: 34 percent
Coles: 28 percent
Aldi: 11 percent
IGA: 7 percent
Other supermarkets: 9 percent
Other non-supermarkets: 11 percent
Source: Roy Morgan
Mr. Walker said he expected Kaufland stores, which are four times the size of a large Coles of Woolworths, to appear in malls in the suburbs.
& # 39; I don't think they will be in first-class shopping centers because rents are expensive, but they will settle in smaller and medium-sized shopping centers & # 39 ;.
He said the chain may even visit sites that were previously used by Masters Home Improvement before it went bankrupt in 2016.
& # 39; The hypermarket is a new concept for Australia, but Kaufland has chosen us because we are a country of shoppers and an attractive market & he said.
Kaufland, with 1,300 stores in Europe, is expanding to Australia at a time when retailers are transforming here.
Before Aldi disrupted the market in 2001, Coles and Woolworths had a market share of 80 percent.
They now have 62 percent between them, with Aldi at 11 percent.
With the rise of Aldi, the introduction of Kaufland and the expansion of online retailers such as Amazon, the big two are facing more competition than ever before.
Kaufland, with 1,300 stores in Europe, is expanding to Australia at a time when retailers are transforming here. Pictured: in a store in Europe
Before Aldi disrupted the market in 2001, Coles and Woolworths had a market share of 80 percent. Pictured: in a Kaufland store in Europe
Such competition is great for Australians who can expect cheaper prices.
& # 39; We have world-class supermarkets here, but we are just catching up with the rest of the world, which has more & & # 39 ;, said Mr. Walker.
& # 39; The arrival of Kaufland is great for the country. We have a global supermarket that invests in Australia, provides hundreds of jobs and competes in the market. & # 39;
Kaufland is owned by the German retailer Schwarz Group, the fourth largest retailer in the world and also owns supermarket Lidl.
It plans to open stores in Melbourne and Adelaide in 2021 – with stores in Sydney and Brisbane to follow.
The secret weapon of Kaufland: meet the 29-year-old director
Kaufland Australia Managing Director Julia Kern
Managing Director of Kaufland Australia Julia Kern was appointed in May 2018.
Mrs. Kern, a German who speaks four languages, has been in contact with companies over the past ten months in the run-up to the launch of the Kaufland.
Before being named the top job in Australia, she was previously Executive Director at Region North for the retailer in Germany.
Kaufland CEO Patrick Kaudewitz said that Mrs. Kern was qualified for the job because of her past performance and potential.
& # 39; We do not make such decisions lightly. But we are far away from a juvenile crime that is being confirmed to us, & said Mr. Kaudewitz.
& # 39; The average age of our board members and directors is 43 years. & # 39;
The German head of Kaufland, Richard Lohmiller, also praised the young professional and said she did well in her previous position.
& # 39; The executives who opened the first markets 50 years ago and cleared the way were the same age & he said.
This week The Australian newspaper received a draft economic impact report for the proposed Kaufland store in Mornington, Victoria.
The report said the first batch of stores will sell up to 30,000 products and aims to earn $ 46 million each year.
The chain is trying to subtract Coles and Woolworths customers and can reduce rivals' sales to 7.6 percent.
It wants to suck shoppers in with its huge stores and a huge range of products.
& # 39; The Kaufland supermarket is likely to have a greater reach than a typical full-line supermarket Coles and Woolworths due to the differentiated store offer and the larger total floor space & # 39 ;, the report reads.
More deliveries and food for now: Coles is making many changes as he prepares for the fight against Kaufland
It is after Coles announced in June that it will make a whole series of changes in the coming years, while it is preparing for a bitter fight with new German chains Lidl and Kaufland.
The supermarket has started placing special food-for-now sections in front of its stores and wants to have 100 by the end of the year.
The range offers breakfast meals to take from $ 4.50 as well as $ 4 fruit salads, sandwiches for $ 3 and salads for $ 8.
To cater to increasingly busy customers, the chain will increase home delivery slots at peak times and develop its delivery partnership with UberEats.
It also emphasizes sustainability and requires that all water bottles of its own brand are made from 100% recyclable material. Pictured: Chia seeds of the own brand that cost $ 5.50
At the same time, Coles will continue to work on products aimed at immigrants, a nod to the fact that 30 percent of the population is born abroad.
The chain also has a plan to use 35 data scientists to analyze what customers are buying by following transactions with flybuys cards.
Coles & # 39; changes
Better coffee in fast stores
More deliveries at home
More own brand products
Focus on sustainability
Export more products
Use more robots in warehouses
Changes are not exclusive to the large stores and Coles is also renewing its fast stores with new coffee machines and better prepared meals.
It also emphasizes sustainability and requires that all water bottles of its own brand are made from 100% recyclable material.
Meanwhile, it wants to represent its own brand range, which includes more health and wellness products, 40 percent of its sales.
In addition to these changes, Coles is also overhauling the warehouse side of its business, scrapping jobs and increasing the use of robots to save money.
More robots mean lower costs, which in turn means cheaper food for customers who then have more money to spend in the economy and create jobs elsewhere.
Coles, which earned $ 1.5 billion in 2018 and employs 100,000 people, has a 30 percent stake in the Australian supermarket market, only 37 percent of Woolworths.
The chain says it focuses on $ 1 billion in cumulative savings over a four-year period, while preparing to compete in a supermarket with discount stores.
To cater for increasingly busy customers, it will increase home delivery slots during peak times and develop its delivery partnership with UberEats
. [TagsToTranslate] Dailymail