Kaufland pulls out of the Gold Coast 18 months after buying Burleigh Bunnings site

A global budget supermarket giant slated to open on the Gold Coast has made a shock decision to pull out of the Australian market entirely.

A GLOBAL budget supermarket giant slated to open on the Gold Coast has made a shock decision to pull out of the Australian market entirely.

German supermarket chain Kaufland spent almost $20 million buying the old Bunnings site on Reedy Creek Rd, Burleigh in August 2018.

The grocer also attempted to buy land in Pimpama and Hope Island but was unsuccessful.

The ex-Bunnings site at 197 Reedy Creek Rd, Burleigh. Picture: Glenn Hampson.

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Today Kaufland announced it would no longer attempt to expand into Australia.

It is not clear what will happen to the Bunnings site.

A statement from Kaufland said the future of properties purchased would be discussed in the coming days.

The company’s about 200 Australia employees were also let go.

Kaufland has a formidable presence in Europe with more than 1300 stores across the eastern part of the continent.

The supermarket often seen as a rival to Aldi.

An artist’s impression of a planned Kaufland store. Picture: Supplied

Kaufland International CEO Frank Schumann said the supermarket would concentrate on its European market.

“This was not an easy decision for us. We always felt welcome in Australia. We would like to thank our employees and we apologise for the disruption this decision will cause,” he said.

Kaufland’s attempts to open on the Gold Coast were fraught with errors.

After purchasing the Burleigh site, it was discovered the area was not correctly zoned for its retail operations.