Kaufland Romania

Topics: Strategic management, Retailing, Marketing Pages: 20 (7299 words) Published: January 16, 2013

Being part of the same group as Lidl and Handelshof, Kaufland represents a German hypermarket chain. Their first store opened in 1984 in Neckarsulm and moved along to become a leader in East Germany. Kaufland International owns over 1,000 stores in Germany, Czech Republic, Slovakia, Poland, Romania, Bulgaria and Croatia. The history of Kaufland company began when Joseph Schwarz entered the “Südfrüchte Großhandlung Lidl & Co” at Heilbronn as a shareholder in 1930, which was afterwards, renamed “Lidl & Schwarz KG”. The next goal of the company for the following years was to develop its products and turn into food wholesaler. The company was rebuilt after the war: in 1954 it entered the “A & O-chain”. Their first regional warehouse was developed in northern Wurttemberg. Furthermore, in 1964 the company revealed a wide variety of products by initiating a meat department. The first “Handelshof” discount store was established in Backnang, and in 1977 hypermarket carrying the same name was opened. After the death of Joseph Schwarz in 1977 his son Dieter Schwarz took over the management of the company. In 1984, the first Kaufland hypermarket was opened in Neckarsulm, which became the company's headquarters since 1972.After the reunification of Germany, the Kaufland chain expanded into the Eastern German states and established numerous markets. The first East German Kaufland store was opened in Meissen in 1990. The first department store outside of Germany was established in 1998 in Kladno, Czech Republic. In the following years years, the company established branches in Slovakia (2000), Croatia (since 2001), Poland (2001), Romania (since 2005) and Bulgaria (2006). Kaufland chain entered the Romanian market on 13 October 2005 by building its first subsidiaries in Bucharest, Ploiesti and Ramnicu Valcea. By 2009 they reached revenues exceeding 872 billion Euro on a local level. Moreover, until 2008, 34 magazines were opened, which are indicated on the below Romanian map. By 2009 their revenues exceeded 872 million Euros on a local basis, becoming the second largest chain in Romania after Carrefour, by the value of their sales.

The company‟s strategy was very different of its direct competitors: Kaufland is the hypermarket chain which targeted small cities in Romania, with a population of 25.000- 40.000, while its direct competition avoided such placements and opened their stores in big cities. In 2008, Kaufland had opened 31 hypermarkets, having 5.650 employees, at its headquarters and in the logistic department situated in Industrial Park Ploiesti. The medium number of employees that a branch of Kaufland has is of 150. By 2011, Kaufland opened 54 units and owned the largest budget of expansion in retail, which is estimated at over 100 million Euros.

INDUSTRY AND PRODUCTS Retailers can be seen as part of a system which provides different retail mix to its customers taking into account the customer demographics, lifestyle and purchase behavior. Such systems are helpful in the ingenious display products and customer targeting for boosting the sales. Kaufland or Kaufland Romania SCS offers products of diverse categories as follows:     food items, non-food items, household goods, leisure and gardening products.

It embodies a shop for home, food and office products. In Kaufland‟s product portfolio you can find fruits and vegetables, cheese, dairy products, spongy cakes, electronic goods such as, ovens and other related products. Furthermore, the service portfolio of the company deals with rental and lease of commercial spaces for the galleries in the hypermarket across Romania. Credit card services and newspaper information services are also provided. Kaufland store assortments contain up to 15,000 different items (branded products, regional products and exclusive brands), offering its customers not only low prices for the products, but also freshness, variety and quality. The product portfolio includes...
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