Kaufland steps up its challenge to Australian supermarket giants

ELI GREENBLAT

AUGUST 29, 2019

Australians have their first glimpse of what Kaufland supermarkets will look like when the German discount retailer opens in Australia in 2021.

The global giant announced it will ramp up its launch with two more stores confirmed for Victoria and an additional nine set to be reviewed by the state government’s advisory panel approval process.

The two new stores, to be located in Oakleigh South and Coolaroo, will take Kaufland Australia’s total number of approved stores in Victoria to five.

Kaufland is set to shake up the nation’s $90 billion grocery sector as it locks horns with market leaders Woolworths and Coles, as well as fellow German discounter Aldi.

And it has the financial muscle to take on the major supermarkets.

Kaufland is owned by Schwarz Group, the world’s fourth-largest retailer. Kaufland is a family-owned business that currently operates 1200 stores in seven countries, with over 150,000 employees across Europe.

The first three Kaufland stores, at Dandenong, Epping and Chirnside Park in Victoria, were announced in March 2019, alongside Kaufland’s $459 million Australian distribution centre, to be located at Mickleham in Victoria.

The nine new proposed Kaufland sites, set to be reviewed by an independent panel, include both metropolitan and regional cities, and range throughout western and eastern Victoria.

Combined with the five approved stores, Kaufland Australia’s distribution centre and its proposed headquarters, the additional stores bring Kaufland’s planned total investment in Victoria to over half a billion dollars, with a potential of up to 2400 new jobs.

“With five approved stores, as well as the additional nine sites under review, we are committed to our long-term, sustainable growth across Victoria,” said Kaufland Australia boss Julia Kern.

“We look forward to creating thousands of jobs and creating opportunities for local businesses.”

Kaufland has also begun planning its launch in Queensland, where it has purchased three sites for new stores, and in South Australia, where it has bought a number of blocks of land.

Ms Kern said she was looking forward to seeing Kaufland’s positive early growth in Australia and was eager to open stores in due course.

“Australia is one of the fastest growing regions in the world, and we are excited to grow with it,” she said.

“Our aim is to raise the bar in retail excellence and provide an uncompromising quality food shop for our customers” Ms Kern said.

A typical Kaufland store is vastly different to small-format German discount stores Aldi or Lidl.

It operates large warehouses stores with more than 30,000 products across a wide range of categories such as groceries, fresh food, meat and seafood, general merchandise, clothing, toys, housewares and hardware.