What often appears as a series of incremental upgrades — new checkout systems, digital kiosks, media screens — is, in Kaufland’s case, part of a broader shift. The retailer is gradually turning the store into a connected system of touchpoints, processes, and data flows. The objective is not disruption, but integration: improving existing structures by layering digital functionality onto them.
This approach offers a useful perspective for the industry. Digitalization in physical retail is no longer about standout innovations. It is about how consistently and coherently technologies are embedded into everyday operations.
Retail Media: From Add-On to Core Function
The launch of Kaufland Interact is the clearest expression of this shift. Retail media is no longer positioned as a side business, but as a core layer of the store.
By connecting app, marketplace, and in-store formats such as screens and audio, Kaufland is building a communication infrastructure that runs parallel to the shopping process. The key difference lies in timing and context. “Brands reach people not at some point, but exactly when they are making purchase decisions,” says Matthias Schönwandt, Managing Director of Kaufland Interact.
This is where physical retail regains strategic relevance. Unlike traditional digital advertising, the store offers proximity to intent — and therefore to conversion. By digitizing in-store radio and synchronizing it with other channels, Kaufland is effectively turning its stores into controllable and measurable media environments.
The underlying enabler is data. With a large loyalty base and high store frequency, Kaufland has access to first-party data at scale. The planned customer data platform indicates that retail media is being built on long-term infrastructure rather than short-term monetization.
This signals a shift in how store value is defined: not only by sales per square meter, but increasingly by the ability to activate customer data.
Service Processes: Small Changes, Structural Effects
Alongside communication, Kaufland is also rethinking in-store processes. At first glance, the digital ordering kiosk at fresh counters appears to be a relatively simple tool. In practice, it changes how service processes are organized.
By moving ordering to the store entrance, Kaufland separates it from fulfillment. Waiting time is reduced, but more importantly, workflows become predictable. Peak pressure at the counter is absorbed upstream.
“Our customers appreciate the time savings, while our employees can prepare orders with the same care — just better timed,” says Jasminka Marinovic, International Sales Customer Communication at Kaufland.
This points to a broader principle: digitalization does not have to be complex to be effective. Targeted interventions can reorganize processes in ways that improve both customer experience and operational stability. The fact that personal service remains untouched reinforces another key aspect — digital tools work best when they complement, not replace.
Checkout: Dissolving a Key Moment of the Store
A more established pillar is the expansion of self-checkout and scan-as-you-shop solutions. But now Kaufland introduces this technology at scale. The expansion illustrates how far this logic can go. Checkout, traditionally the defining moment of the store, is gradually being dissolved.
Self-checkout already shifts control to the customer. With K-Scan, the process moves further into the shopping journey: products are scanned directly at the shelf, and the final payment becomes a technical step.
“K-Scan is used by more and more people because it simplifies the shopping process,” says Heiko Koch, Head of Sales, Logistics and SCM at Kaufland in Germany. “Once customers try it, they usually stick with it.”
From a store perspective, this has spatial and operational implications. Checkout zones lose centrality, while the aisle gains importance as a point of interaction. Yet Kaufland avoids a fully automated model. Staffed checkouts remain, reflecting a pragmatic understanding that digital adoption is not uniform.
Structured, not Experimental Innovation
Behind these developments is a structured approach to innovation. Through its Innovation Hub, Kaufland integrates external partners into its operations, focusing on solutions that can be tested and scaled quickly.
“Our Innovation Hub is aimed at start-ups that have developed technological solutions for the food retail market,” says Markus Speck, Head of Kaufland Business Development.
What stands out is the emphasis on implementation. Innovation is not treated as a parallel activity, but as a continuous input into the core business. This reduces the gap between experimentation and rollout — a common bottleneck in large organizations.
The Store as a Connected System
Taken together, Kaufland’s initiatives illustrate a shift in perspective. The store is no longer defined by individual functions — selling, servicing, checking out — but by how these functions are connected.
- Retail media adds a communication layer.
- Digital ordering reorganizes service.
- Scan-as-you-shop reshapes transactions.
- The Innovation Hub feeds new capabilities into the system.
For the industry, the implication is clear: digitalization creates value when it links existing elements into a coherent structure. The competitive advantage lies less in single technologies than in how effectively they interact.
Kaufland’s approach shows that the future store will not be built around one breakthrough idea but around the consistent integration of many.
