Lidl has sent shockwaves through the industry in its German home market by acquiring grocery delivery start-up Kochzauber.

Schwarz Group’s discount store fascia has bought 100% of recipe box delivery service Kochzauber from ecommerce specialist MyToys.de. Prior to purchase, MyToys had been considering closing Kochzauber down.

Kochzauber

Kochzauber

Lidl has acquired recipe box delivery start-up Kochzauber from ecommerce specialist MyToys.de

Lidl has operated an online shop in Germany for many years. Last year it expanded the range of its ecommerce operation, which mainly focuses on general merchandise, by adding more food as well as drug store items, but the products on offer only include ambient groceries.

Lidl intends to keep Kochzauber as a standalone brand and plans to expand its recipe box service, which sees subscribers receive cartons containing recipe-appropriate ingredients and fresh grocery items directly.

Company synergy

The recipe box business model is currently gaining momentum in Germany, mostly due to a massive marketing move by Kochzauber’s competitor Hello Fresh.

The heavy investment the Rocket Internet subsidiary has made to enhance shopper knowledge and understanding of the idea could, of course, also have a positive effect for Kochzauber.

“Lidl could gain inspiration from the attitude and values of a start-up company in the online business. Fresh thinking in this regard is essential to drive online success”

Denise Klug and Clare Nutter, Planet Retail

Despite the fact that Kochzauber will remain a standalone, the operation is likely to provide Lidl with crucial knowledge in terms of delivering fresh grocery items.

Lidl could also gain inspiration from the attitude and values of a start-up company in the online business. This is likely to differ greatly from the approach of the long-established German retailer, but fresh thinking in this regard is essential to drive online success.

History has shown that the most successful ecommerce operators are the ones that think outside the box and do not simply transpose knowledge of operating physical outlets to the online world. This is now more important than ever.

Staving off Amazon Fresh

The news of Lidl’s acquisition comes at a time when German bricks-and-mortar store operators are awaiting the market entry of Amazon Fresh.

Amazon Pantry launches in the UK

Amazon Pantry launches in the UK

Amazon Pantry is thought to signal the launch of Amazon Fresh

Rumours have been circulating that a launch of Fresh is starting to take shape for next year, with Munich thought to be the likely initial target.

The ecommerce giant has already been rolling out its Pantry offer in the market, which enables shoppers to fill a box with everyday household essential items.

Combining this extensive non-perishable range with fresh produce will help to round out its grocery proposition.

While there will undoubtedly be challenges for Amazon in terms of building out its range and developing an image as a credible grocer in the eye of the consumer, in ultra-competitive Western European markets with limited volume growth on offer, this will certainly be an unwelcome new comer.