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    INTERVIEW Marco Hoessl, Kaufland:  “AI won’t replace people in retail, but it will enhance decision-making and simplify operations”

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    “In 2025, Romania’s FMCG and retail landscape is shaped by a blend of cautious optimism and pragmatic choices. Inflation remains unpredictable – recorded at 5.8% in June and forecasted to approach 9% in the upcoming months, as estimated by S&P Global Ratings. This keeps consumers price-sensitive and focused on value. According to the YouGov Romania – Thrills, Drops and Loops in FMCG report, 67% of Romanians say they feel the impact of price increases, and nearly half actively look for promotions and better value,” Marco Hoessl – CEO Kaufland Romania & Moldova told The Diplomat-Bucharest.

    “For us, the future of retail is phygital, where the scale and trust of physical stores meet the speed and precision of digital tools. It’s not about choosing between offline and online, but rather about integrating them to build a more relevant, efficient and human shopping experience.” 

    What are the main macroeconomic or consumer confidence factors impacting FMCG and retail business in Romania in 2025?

    In 2025, Romania’s FMCG and retail landscape is shaped by a blend of cautious optimism and pragmatic choices. Inflation remains unpredictable – recorded at 5.8% in June and forecasted to approach 9% in the upcoming months, as estimated by S&P Global Ratings. This keeps consumers price-sensitive and focused on value. According to the YouGov Romania – Thrills, Drops and Loops in FMCG report, 67% of Romanians say they feel the impact of price increases, and nearly half actively look for promotions and better value.

    At the same time, confidence is gradually returning. We see a renewed appetite for small indulgences and lifestyle upgrades – signs that consumers are adapting rather than retreating. For retailers, this means balancing affordability with experience, and ensuring that trust, convenience and price stay aligned. 

    How are inflation, supply chain instability, or global events affecting product availability and pricing in Romania?

    Fortunately, we haven’t experienced major disruptions. Our supply chains have remained stable, thanks to a long-term local sourcing strategy and a strong partners network. This has allowed us to stay agile, even in volatile global contexts. While the fresh produce segment has faced occasional fluctuations due to seasonal and weather-related factors, overall product availability has remained stable, supported by robust planning and our long-standing partnerships with Romanian producers.

    Beyond stability, we’ve expanded our assortment in line with consumer demand and focused on pricing campaigns that truly make a difference to household budgets. A recent example is our campaign “Kaufland, your good neighbour” encouraging Kaufland Card users to activate digital coupons and access weekly tailored offers, with prize incentives, including group vacations for families or friends.

    We operate one of the most extensive store networks in the country, which keeps us close to customers wherever they live. And that’s exactly how we want to be perceived: not just as a retailer, but as a good neighbour. One that understands local needs and responds with relevance, fairness, and consistency. 

    What challenges are brands facing when trying to maintain customer loyalty in such a dynamic retail environment?

    Relevance is the hard part – and price alone won’t buy it. Romanian shoppers are highly promotion-responsive and will switch brands or even stores for a better deal, so transactional loyalty erodes fast. To earn repeat choice, brands now have to deliver a combination of value, trust, and purpose. Nearly two out of three Romanian consumers say they care about product quality and are willing to pay more for it, while almost half actively look for environmentally friendly options, according to YouGov Romania recent data. Across Europe, this shift is even stronger among younger generations, confirming that sustainability is not a trend – it’s an expectation.

    Shoppers also factor a retailer’s broader conduct into store choice: being seen as socially and environmentally responsible is now part of the decision set, even if price and convenience remain primary.

    At Kaufland, we connect these dots: sharp pricing and strong private labels, yes — but also 85% of our food assortment sourced locally, €9.5 million invested in community causes in 2024 alone, and a growing Kaufland Card ecosystem for personalised benefits. We support causes that matter and stay close to the people we serve. That’s how you build long-term loyalty.

    Which FMCG / retail categories are showing the strongest growth in Romania in 2025?

    Several categories are showing strong performance this year, and the common driver is a more intentional, value-driven way of shopping.

    Private labels continue to gain ground, as customers increasingly trust their quality and see them as a smart choice. In fact, 59% of Romanians say they believe private label is on par with big brands, according to YouGov Romania recent reports. Fresh and chilled products are gaining popularity, driven by the growing demand for healthier, more natural options – especially those of local origin. And while still niche, plant-based and free-from products are expanding fast, particularly among younger, urban shoppers. Our own brands, like K-Veggie and K-free, meet this demand by offering affordable options tailored to specific dietary needs.

    At Kaufland, we’ve made freshness and availability a strategic focus. Through our Freshness Guarantee, customers who find expired products receive a 10 lei voucher. Similarly, our “Always on Shelf” Guarantee ensures availability for selected essentials: if a marked product is missing, the customer receives 10 lei voucher at the info desk. It’s a simple, transparent way to maintain trust and deliver on expectations.

    Today’s consumers shop more consciously. They read the labels, care about the origin, and they look for balance between taste and health. 

    What are the key consumer behavior trends shaping the FMCG and retail market in Romania in 2025?

    Three key trends stand out.

    First: value consciousness. Romanians are price-aware, but not price-only. They look for smart deals – especially in food retail – and they reward brands that are honest and predictable.

    Second: health and sustainability. 60% of Romanian consumers actively check labels and ingredients. There is a growing preference for local, fresh, and responsibly sourced products.

    Third: the digital layer. People are increasingly comfortable using mobile apps to manage purchases, track promotions, and plan their shopping – Kaufland Card being a clear example of how digital and retail can work hand-in-hand.

    How is the balance shifting between traditional retail, modern trade, and e-commerce (digital transformation and omnichannel experiences) in Romania this year?

    Modern retail remains dominant, with discounters, supermarkets, and hypermarkets leading food sales. Traditional trade persists in rural areas, but the structural shift to modern formats is well underway.

    E-commerce continues to evolve post-2020. We offer fast delivery options in dozens of urban areas nationwide through partnerships with Glovo and Wolt, giving customers access to over 1000 everyday essentials. However, our strategic focus is on enhancing the in-store journey through digitalisation. Self check-out is now available in all Kaufland stores, and we are scaling up the K-Scan service to enable faster, more autonomous shopping. At the same time, we are upgrading our Kaufland Card loyalty programme, making it more intuitive, personalised and rewarding.

    For us, the future of retail is phygital, where the scale and trust of physical stores meet the speed and precision of digital tools. It’s not about choosing between offline and online, but rather about integrating them to build a more relevant, efficient and human shopping experience.

    What is the impact of AI technologies in the FMCG and retail in Romania and what to expect in the future?

    AI is already an integral part of our operations – from supply chain forecasting to dynamic pricing, demand planning, and shelf optimisation. It helps us reduce waste, improve availability, and serve customers faster.

    But its bigger role is in real-time personalisation. AI allows us to better understand behaviour and deliver offers and content that match individual needs.

    Looking ahead, AI won’t replace people in retail – but it will enhance decision-making, simplify operations, and free up time for what matters most: the customer.

     

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