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06 January 2025

Kaufland Faces Closure And Fee Changes As It Aims For Sustainability

Store closures and new plastic bag fees highlight Kaufland's shift to sustainable practices amid market pressures.

Kaufland, one of Germany's leading supermarket chains, is undergoing significant transformations as it navigates the competitive retail market. Starting from 2024, the grocery giant plans to close multiple store locations, including sites like Recklinghausen and Dortmund. This move follows the closing of three stores already conducted last year, indicating a notable shift for the brand.

The closures are not merely about reducing the number of physical stores; they represent broader challenges affecting the retail sector, particularly for brick-and-mortar establishments. Growing competition from online supermarkets and changes in consumer shopping habits contribute to these painful decisions. With over 770 stores and about 90,000 employees, the impact of these closures reverberates through communities, prompting questions about job security and future customer choices.

Interestingly, even as it slims down its footprint, Kaufland is not just closing doors but experimenting with innovative sales strategies. One such initiative is the introduction of 'mystery boxes,' which have stirred curiosity among consumers. Reports suggest customers are eager to try their luck with these surprise packages, reminiscent of childhood treat bags, offering unknown contents with the potential to delight or disappoint. Nancy K., who recently purchased such a box, reflects, "I tried my luck and had fun like a child." With experiences shared both positive and negative ranging from unexpected treasures to mundane items, these sales tactics reflect shifting consumer interests.

Another significant shift is Kaufland's decision to start charging for plastic bags commonly used for fruits and vegetables. Customers are now facing what some have termed unexpected charges, such as the one cent fee appearing under the label "OuG Beutel" on shoppers’ receipts. This policy aims to promote awareness of single-use plastics and encourage the adoption of more sustainable options. Kaufland noted, "With the pricing of the knot bags at one cent, we want to raise our customers' awareness for the conscious consumption of single-use plastic." While such changes are becoming industry-standard with competitors like Aldi and Lidl already implementing similar charges, it remains to be seen how well customers will adapt.

The supermarket's entrance fee for plastic bags has received mixed reviews. Some customers voiced confusion upon discovering charges on their receipts, asking, "What have I purchased?" Yet many understand these actions as necessary steps toward sustainability and are willing to adjust their shopping habits accordingly. With the EU regulations limiting the sale of thicker plastic bags, Kaufland, like others, is pivoting to comply with environmental expectations.

Customer reactions to Kaufland's business practices highlight the balance between sustainability intentions and customer experience. While some have reported feeling blindsided by the new policies, others embrace the shift. Online platforms buzz with opinions; some assert their satisfaction with mystery box purchases, stating, "I have actually drawn AirPods," showcasing the thrill of the unknown. Yet, caution abounds, with users cautioning against dreaming too big, realizing the gamble can yield less desirable results.

While Kaufland focuses on new strategies, questions remain about employee satisfaction and compensation. According to "Kununu," the average salaries for various positions at Kaufland range, illustrating the disparities within the company's pay structure. For example, cashiers typically earn about €31,400 per year, whereas department heads can make around €46,000. Though Kaufland claims their figures are higher on average and provides bonuses such as holiday compensation, many employees feel the need for higher salaries reflective of their contributions.

Kaufland's recent changes encapsulate not just its operational challenges but also reflect the wider demands of modern shoppers who increasingly value sustainability alongside quality. The supermarket aims to streamline its business practices to remain competitive amid significant economic pressures. With proactive steps like introducing paid plastic bags and testing unique sales formats, Kaufland appears to navigate the complex terrain of consumer preferences and environmental responsibility.

Overall, Kaufland is charting new paths through the turbulent waters of retail. With careful implementation of changes and transparent communication with its customers, the chain might just find its footing amid the ever-evolving grocery sector.