Schwarz Group, the German owner of Lidl and Kaufland, is investing another 200 million euros into its online business. That money should enable Kaufland to expand into two new markets, while Lidl Digital needs to improve its cross-channel business.
Structural approach
Last year, Lidl Digital (the combined e-commerce branch of both chains) saw its sales rise from 1.73 to 1.94 billion euros. However, losses also grew, from 71 to 219 million. Additionally, the financial year 2023/24 (ending in February) does not promise much improvement: according to Lebensmittel Zeitung, the group expects a moderate increase in sales and only slightly better profit figures.
Insiders say that a structural approach is needed, and that is exactly what new CEO Christian Härtnagel is planning to do. He wants to better connect online with the shops and stimulate parallel growth. At the same time, Kaufland’s digital expansion continues: this summer, the supermarket chain will open its marketplace for Austrian and Polish consumers. Kaufland already has quite a few physical shops in Poland, but none yet in Austria.
