German retailer Schwarz is mulling the launch of its Kaufland and Lidl hypermarkets in the Ukraine.

According to local reports, Schwarz is looking for retail space in the country to expand the Kaufland format organically as well as considering acquiring an existing chain in the market.

Since the beginning of the recession, the valuation of local players has dropped, making Ukrainian chains an attractive investment for the European retailers, one analyst told just-food. 

Last spring, Schwarz held talks with Caravan Group over the development of Lidl.

According to those plans, the companies were keen to develop the chain through the construction of commercial facilities in regional centres with a population of over 100,000 people.