The big players on the Australian supermarket scene will be buckling up for some stiff competition this Friday morning, with the announcement that German hypermarket Kaufland has received planning approval for its first three stores in Victoria and Australia’s largest distribution centre.
The first stores at Chirnside Park, Dandenong and Epping received planning approval after an independent Advisory Panel process and despite the objections of many other players in the market.
The state-of-the-art distribution centre to be located in Mickleham, will be the largest in Australia and will act as the point of consolidation and distribution of goods to its supermarkets.
The proposed Melbourne headquarters was also approved.
Kaufland Australia managing director Julia Kern celebrated the news today with Treasurer of Victoria and Minister for Economic Development, Tim Pallas.
“Kaufland is committed to long term investment both in Victoria and across Australia. 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 1,600 Victorian jobs,” Kern said.
“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.”
Kern thanked the Victorian Government and everyone who participated in the independent Advisory Panel process. She said she was looking forward to opening Kaufland stores in Victoria in due course.
Kaufland supermarkets will have a total store area of 4,000 square metres and will be stocked with local, regional and international products at discount pricing. Each store will include a bakery, butcher and liquor areas.
A number of independent local businesses such as cafés, sushi bars or nail salons will compliment the overall shopping destination.
“Kaufland will be a one-stop destination supermarket. Our aim is to provide all Australians with more service and choice, highlighted by our principles of simplicity, quality, variety and price.”
“Kaufland is delighted to call Australia our new home. We look forward to continuing our commitment to partner with local businesses and the wider community to ensure we create the best outcome possible.”
“Being customer centric is at the heart of all that we do – driven by our values of Performance, Dynamics and Fairness, we aim to increase choice, provide high quality service and promote fair competition to ensure that the customer is always the winner,” Kaufland said in a statement.
Three further proposed Kaufland sites, at Oakleigh South, Coolaroo, and Mornington, are currently being reviewed by the Advisory Panel.
The supermarket this week began advertising for Area Manager positions after receiving an additional $145 million capital injection from its German parent Schwartz Group for its ambitious plans down under.
The family-owned business currently operates 1,200 stores in 7 countries, with over 150,000 employees across Europe.
This story originally appeared on sister-site Inside FMCG.
