200 Australian Jobs Slashed As Supermarket Woes Continue
German supermarket company, Kaufland, has sensationally exited the Australian market before it opened a single store – instead, opting for better investment returns in Europe.
The decision to slash its Australian launch after spending up to $500million and instead focus on expanding operations in Europe is set to eliminate an impending challenge for Australian supermarkets.
Kaufland’s owners, Schwarz Group, is said to have been threatening to spearhead a painful new price war.
Around 200 Kaufland Australia employees will become unemployed. Most were lured with the promise of building a business from the ground and were poached from rival supermarkets.
The shocked Kaufland staff were told that despite spending millions on varies properties acts South Australia, Victoria, Queensland and NSW, that the company was dumping its ambitious rollout plans.
Their 29-year-old country manager, Julia Kern, broke the news to staff.
But despite the shocking move, Kaufland had still been hiring in recent days, with some retail executives planning to quit their current roles to accept one with Kaufland, before the announcement.
The decision created a surge in shares in listed rivals such as Coles, Wesfarmers and Woolworths.