Australia’s grocery market has found a new player, adding to what is already a highly competitive market. Kaufland has paid AUD$25 million to buy a site in Forestville, Adelaide, looking for a foothold in the $90 billion supermarket sector.
Kaufland is part of German giant Schwartz group. Schwartz owns discount chain Lidl, which has been attempting to enter the Australian market
The site is about 36,00m2, the size of which has put a hold on a deal so far, according to an Adelaide commercial property agent. Kaufland is set to offer a range of almost 60,000 products in a warehouse style store, similar to their European ‘hypermarkets’, almost five times the size of a standard Coles or Woolworths.
“It will be more akin to a Costco approach with a whole breadth of product offerings, including groceries and white goods,” an Adelaide retail expert said. “This is going to be a destination shopping experience.”
While Kaufland has not confirmed the deal as yet, its Australian website all but confirms the move. “Kaufland has an ambitious Australian investment and development program,” according to the website. “Therefore, we are always looking to purchase suitable and appropriate sites.” The website goes on to highlight spatial requirements of up to 20,000m2.