German hypermarket giant Kaufland building $255 million distribution centre in Melbourne ahead of Gold Coast rollout

A German supermarket giant, which has bought a vast block of land on the Gold Coast, has made another big-dollar move to enhance its Aussie presence.

A 4052 sqm Kaufland supermarket approved in South Australia. SOURCE: SA Planning Commission

KAUFLAND, the German hypermarket group which has the Gold Coast in its sights, has started work on a $255 million distribution centre at Mickleham in Victoria.

Kaufland says the centre will use state-of-the-art technologies across automation, sustainability and efficiency and create 600 jobs.

The centre will span more than 11ha and have 130 loading docks.

Kaufland director Maximilian Wiedman yesterday said the centre would be the beating heart of the group’s Australian supply chain.

Last year Kaufland spent $19.74 million buying a former Bunnings site in Reedy Creek Rd, Burleigh Heads.

It has cleared the 3ha-plus site and is trying to resolve a zoning problem.

The group is believed to have missed out on the former Village Square markets site on Hope Island.

The ex-Bunnings site at 197 Reedy Creek Rd, Burleigh. It's been cleared by new owner. Picture Glenn Hampson

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In March, Kaufland announced the approval of its first three stores in Victoria — at Dandenong, Epping and Chirnside Park — and it also has received planning approval for two sites in South Australia.

Kaufland, which has a Brisbane office, is yet to open an outlet in Australia and seems to have much of its focus on sites it has secured in Victoria and South Australia.

Meanwhile, Costco, from the US, hasn’t opened its chequebook but has an eye out for the right property.