Kaufland, the new supermarket powerhouse, that is poised to enter Australia, has shared its plans for expansion and its aims to disrupt the retail landscape as we know it.
Earlier this year, we shared that the German company was soon to be bursting into Australia.
Kaufland has been quietly making plans and putting down stakes in local areas but now there is confirmation that the retailer is planning to open nine stores in Victoria, including Oakleigh South, in the city’s south east, and Coolaroo, in Melbourne’s north, as reported in news.com.au.
More Than 20 Stores Already Planned
A few months ago, the retail giant announced that the first three sites would be situated in Dandenong, Epping and Chirnside Park.
The Kaufland network also includes six more locations across South Australia and Victoria and the inevitable Sydney stores haven’t even been made public yet.
Queensland University of Technology marketing professor Dr Gary Mortimer spoke to news.com.au. saying:
“It’s moving along at a rapid pace, it’s certainly moving much faster than many of us expected,”
“If we went back even as recent as six months, the initial indication was that they would launch somewhere between eight and 12 stores in 2020.
“Now it looks like they’ve decided to push that out to 2021 and capture more sites.”
Big Financial Injection
Kaufland Australia managing director Julia Kern has said that the stores in Victoria, together with the headquarters and distribution centre would add up to half a billion dollars into the state and provide as many as 2400 new jobs.
“Our aim is to raise the bar in retail excellence and provide an uncompromising quality food shop for our customers.”
Victorians are going to get the first taste of Kaufland with the first two stores under construction.
So how does Kaufland compare to our local supermarkets?
1) SIZE – Kaufland stores are mammoth and can measure up to 20,000 square metres – which is five times larger than a flagship Coles or Woolies and over 15 times bigger than an average Aldi. Bunnings is around 15,000 square metres so we’re talking BIG!
2) RANGE – Kaufland may be comparable to Aldi in terms of price. However, Kaufland stocks around 40,000 different items, while Aldi may only have 1,300 on its shelves. Kaufland also sells real brands.
3) MOTHERSHIP – Kaufland is backed by Schwarz Gruppe – the fourth biggest retailer in the world so it has the financial clout and experience to majorly disrupt the existing retail playground.
Coles and Woolies have strong foundations to survive the entry of a brand new player and have loyalty and low prices on their side.
However, this German rival will certainly mix things up a bit, especially since its planning to sell a full range of rock-bottom priced department store goods. So watch out Kmart and Target!
Are you looking forward to a new supermarket chain? Tell us your thoughts in the comments below.
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