Kaufland set to unleash

GLOBAL German supermarket chain Kaufland will unleash a $500 million assault on the nation’s leading supermarket giants Woolworths, Coles and Aldi after winning planning approval for its first three supermarkets and a new distribution centre in Victoria.

Kaufland Australia managing director Julia Kern will announce this morning the three maiden stores in Melbourne and the construction of a distribution centre, which will be a vital link in its supply chain as it spreads its supermarkets through Australia.

With its arrival in Victoria, Kaufland is laying down a challenge to the heavyweights in Australia’s $90 billion grocery sector.

Kaufland, which has more than 1230 stores in Europe, plans supermarkets selling a wide range of products across many categories, including fresh food, packaged groceries, general merchandise, clothing, toys, homewares and hardware.

“Kaufland will be a onestop destination supermarket,” said a Kaufland spokeswoman. “Our aim is to showcase the best of Australian produce, alongside the best international products, supported by the private label range of a discount supermarket, all at a price point that is accessible to everyone.”

Planning approval for Kaufland’s move was to be announced at a press conference this morning with Victorian Treasurer Tim Pallas at Mickleham in outer Melbourne, the proposed site of its stateof-the-art distribution centre.

It will distribute goods to Kaufland’s new supermarkets, the first of which will be at Chirnside Park, Dandenong and Epping.

All received planning approval after an independent advisory panel process.

“Kaufland is committed to long-term investment both in Victoria and across Australia,” Ms Kern said. “The development and approval of our first three stores, our distribution centre and our proposed future headquarters in Victoria will result in the creation of up to 1600 Victorian jobs.

“Our initial investment of $459 million will create opportunities for local businesses and stimulate much-needed competition and consumer choice in Australia’s supermarket sector.

Ms Kern said she was looking forward to opening more Kaufland stores in Victoria in due course.

“Our aim is to provide all Australians with more service and choice, highlighted by our principles of simplicity, quality, variety and price,” she said.

“Kaufland is delighted to call Australia our new home.”

Kaufland will be very different to existing small-format supermarkets.

It is run out of large warehouses of up to 4000 square metres, with as many as 60,000 products.