Home > Appliances > Kaufland, The Name Kogan Forgot When Hyping Up Appliances

Kaufland, The Name Kogan Forgot When Hyping Up Appliances

When Kogan was hyping up their entry into the house brand appliance market last week that led to a spike in their share price one word was missing from their press release, Kaufland.

Today Kogan shares crashed a further 2.96% after falling nearly 14% last week when directors of the Company including Ruslan Kogan attempted to sell $100M worth of shares in the Company.

A European retailer Kaufland is set to take on arch rival Aldi along with Big W in the value appliance market, with a combination of branded and none branded appliances.

Recently Kaufland appointed 28-year-old Julia Kern, to spearhead the global ­retailer’s assault on the Australian market. The Company is already talking to appliance, consumer electronics and mobile brands about the Australian market.

Recently the German retailer acquired Adelaide’s Le Cornu site on Anzac Highway for $25 million.

A recent IRI survey showed that 68 per cent of Australian households now shop at Aldi, up from 56 per cent in 2015, with penetration nearing 75 per cent on the eastern seaboard, Kaufland aims to compete head on with Aldi but instead of house brand appliances the Company will sell low cost branded appliances from European and Asian manufacturers such as Bosch, Tefal and Samsung.

The Australian said recently that Kaufland has very deep pockets to open a new front in the long-running supermarket wars in Australia, as well as extending its battle with archrival Aldi in Europe to the Australian market.

With more than $135 billion a year in sales, it easily dwarfs Woolworths and Coles, which combined only have sales of just under $70bn. Last year, Kaufland Australia was provided with $43 million in funding from its parent company Schwarz Group.

The Kaufland Australia website has stated that it has an “ambitious Australian investment and development program” and is openly inviting deals to purchase sites of between 15,000sq m and 25,000sq m.

Morgan Stanley analyst Thomas Kierath said the local market might not be fully appreciating the potential threat posed by Kaufland’s arrival.

He added that Kaufland could lease up to 70 ex-Masters stores currently vacant.

Morgan Stanley also estimates that based on ­Europe penetration Australia could support as many as 295 Kaufland stores longer term and that its annual sales in Australia could hit more than $3bn from 56 stores within six years of its first store opening.

It could see Kaufland rolling out stores at a faster pace than Aldi, which opened its maiden store in Australia in 2001 and just opened its 500th store last year, only recently pushed into South Australia and Western Australia.

“We think investors are underestimating Kaufland’s flexible store format approach, which ­enables a faster rollout versus Aldi’s ‘cookie-cutter’ approach,’’ Mr Kierath said.

You may also like
Aussies Scammed $3M Online Shopping This Year
Black Friday & Cyber Monday Gain Aussie Traction
Philips Launch New Hue ‘Candle’ & ‘Spot’ Smart Lights
Online Retail Buying Pauses
Kogan Comes Of Age With Gig Alongside JB Hi Fi, Harvey Norman & Optus