Oz Retailers Brace For Kaufland $459M Investment
Australian retailers are bracing for the entry of German supermarket giant, Kaufland, following reports it’s set to unleash an initial $459 million investment. Competing with ALDI and Kmart, Kaufland is renowned for being a big seller of affordable appliances across Europe.
Reported by The Australian, Kaufland has won planning approval for its first three Aussie supermarkets – Melbourne’s Chirnside Park, Dandenong and Epping – plus a new distribution centre in Victoria.
The VIC distribution centre is the linchpin for its local supply chain expansion, with more stores to be built across VIC and nationwide over time.
The German supermarket boasts over 1,000 outlets across Europe, selling a wide range of consumer goods – from grocery to clothing, plus hardware to electronics.
Management hopes to establish Kaufland Australia as a one-stop ‘destination’ supermarket.
The supermarket giant will establish its local HQ in Victoria, and alongside its first three stores and distribution centre will create up to 1,600 jobs.
Owned by the fourth largest retailer in the world – the Schwarz Group – Kaufland generally operates out of large warehouse outlets, stocking over 50,000 products across a wide range of categories.
As previously reported, the supermarket’s proposed entry has drawn concern from several local retail groups and developers.