Kaufland posted EUR1.8 billion revenue in 2014, according to the latest public data available, 10% more than in 2013. The double-digit growth rate continued in the first half of 2015, so its sales rose from EUR830 million to EUR921 million.
The opening of five hypermateks last year, the food VAT cut from 24% to 9% on June 1, and some of its older stores reaching maturity all helped Kaufland achieve growth in revenue in Romania. The retailer did not provide any comment on the 2015 financial results by press time only saying that the VAT cut did help boost year-end sales.
“We noticed a significant increase in sales compared with December last year. An important part of the sales growth came from the VAT cut,” Kaufland Romania officials said, adding the last month of the year usually generates 10% of the annual sales.
Kaufland therefore becomes the first Romanian retailer to overshoot the EUR2 billion annual sales mark, following steady growth year by year through steady expansion and a price policy tailored to the local market. It took the top spot among retailers in Romania in 2011, which it has yet to lose.
ZF reported in the summer of 2014 that Kaufland set out to achieve EUR2 billion sales in 2018. It however, attained its target three years earlier. Its EUR2 billion sales mean it accounts for 12% of the local grocery retail and about 22% of the modern retail. Only five other companies in Romania have hit this mark – Automobile Dacia, and two entities of each OMV Petrom and Rompetrol groups.
Only one other retailer came close to the EUR2 billion mark and that was Metro Cash & Carry, which posted EUR1.7 billion sales in Romania in 2007, its best year in this country.
(English version by Loredana Fratila-Cristescu)