German Supermarket Pulls Out Of Australia, Old Le Cornu Site In Limbo

Marco Green
January 22, 2020

The statement said the decision was not a reflection of the "efforts of our level employees or management" or the support the company has received in Australia.

Kaufland, which is owned by the world's fourth largest retailer, was expected to prompt price competition between nation-wide industry leaders Coles and Woolworths, which have the monopoly on consumer choice. It had also planned for a store in Belmont North, Newcastle.

Kaufland, which is owned by the world's fourth largest retailer, Schwarz Group, claimed that after careful consideration it had chose to undertake an orderly withdrawal from the Australian market to concentrate its business on its European core markets.

Supermarket giant Kaufland has reneged on its ambitious plans for Australia, announcing on Wednesday it would no longer be opening any stores.

"This was not an easy decision for us".

"We always felt welcome in Australia".

"We would also like to thank our business partners, who offered us great support over the last few years. We will actively shape the consolidation of the European retail sector, thus further reinforcing our leading position", Schumann said.

'I don't think Kaufland will enter the market quietly, they will be very aggressive because price cuts is their game, ' he said.

More than a supermarket, Kaufland stores have been described as somewhere between a grocery store and a Kmart, stocking an astounding 30,000 items.

In September, the company also celebrated breaking ground on its first South Australian store, which cost $24 million and was set to create 150 jobs.

"The future of Kaufland's existing Australian investments, including properties purchased for retail outlets and distribution infrastructure, will be discussed with the relevant parties in the coming days".

Visit Business Insider Australia's homepage for more stories.

Other reports by Click Lancashire

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