Kaufland secures planning approval for first South Australian store on Churchill Road, Prospect
German hypermarket giant Kaufland has finally secured planning approval for its first South Australian store. MAP: SEE MAJOR SUPERMARKETS IN SA
City
Don't miss out on the headlines from City. Followed categories will be added to My News.
- Original Kaufland in Prospect plans: ‘Too big, poorly designed’
- Aldi and Kaufland: Supermarket giants change the face of retail
German hypermarket giant Kaufland has secured planning approval for its first South Australian store in a watershed moment for retail in the state.
The state’s planning authority on Thursday approved the $23.5 million project, which will feature a 4052 sqm supermarket, 1607 sqm stockroom, 280 sqm food hall and 245 sqm of shops at 250 Churchill Rd, Prospect.
The State Commission Assessment Panel had twice deferred a decision on the project pending Kaufland increasing landscaping around the building, including the addition of 80 trees in the car park and 14 mature trees fronting the western side of Churchill Rd.
Construction of the supermarket complex, which will occupy a 23,700 sqm site on former industrial land, is expected to begin this year employing an estimated 150 people, according to acting investment minister Tim Whetstone.
In its planning report Kaufland had estimated 250 jobs would be created during construction.
Mr Whetstone said the retail complex would employ 100 staff once completed.
Kaufland is a subsidiary of the Schwarz Group, the world’s fourth largest retail group.
Last month the company secured planning approval for its first three Australian stores and distribution centre in Victoria.
Kaufland Australia’s managing director Julia Kern said the company was committed to investing in SA for the “long term”.
Prospect mayor David O’Loughlin said the council was excited to see another “blighted part” of the city being developed: “Locals have been waiting 40 years to see something new on that corner.”
“It’s (the scale) certainly well beyond what we anticipated for the site nevertheless we welcome the development and the dense landscaping they’ve offered.
“It will marry in with the successful Bunnings development really well and continue to change the paradigm for Churchill Rd.”
HELP US MAP YOUR AREA: We’re building a map of all of SA’s major supermarkets. Let us know in the form below if we’ve missed a local supermarket in your suburb or town.
He said the project and adjoining townhouse and apartment development would allow the council to lobby the State Government to upgrade the neighbouring Islington station.
“I wouldn’t feel safe loading my sheep on it at the moment, we’d hope we could get an upgrade to take its rightful place in the Adelaide metro network, we hope that can be done in parallel with the electrification,” he said.
But retail property expert Andrew Lucas, senior consultant at Pirie St-based Property & Advisory, said Kaufland’s presence would “adversely” impact turnover in existing supermarkets due to low growth in SA’s household consumption expenditure and population.
“When the size of the pie is not growing, the only outcome of there being more stores in the marketplace is that the pie will be cut into smaller pieces — particularly in an environment where the other players are unlikely to take a backward step in the face of new competition,” Mr Lucas, who helped provide data for the supermarket map above, said.
“Of the current Kaufland proposals, the most significant impact on the local retail market will probably be felt if its Prospect development proceeds, as the site is only a short distance from existing large supermarket clusters at North Park Shopping Centre and Churchill Centre.”
He said in the long term, should Kaufland buy more local produce, that existing supermarket operators would “simply buy less”.
“Similarly, new jobs created at Kaufland could simply offset job losses at existing supermarkets,” he said.
“If it brings new marketing ideas, as Aldi did, the arrival of Kaufland could enhance the overall shopping experience for South Australians. We’ll have to wait and see on that score.”
Kaufland has also lodged plans with SCAP for a supermarket at on the old Le Cornu site at Anzac Highway, Forestville and another in Munno Para.
Palestinian vigil goes ahead on anniversary of horror Hamas attack
Despite strong calls from the Premier to cancel a planned vigil, about 80 protesters have met on the steps of Parliament House.
‘He built an empire’: Adelaide night-life legend’s legacy remembered
The man who brought big names such as Calvin Harris, The Rudimentals and Rihanna to Adelaide will be remembered for how he transformed the city’s music scene.