Global German giant Kaufland to open three stores in Melbourne

They’re the German supermarket giant taking on our established players. Kaufland will splash $459 million to launch three stores in Victoria — here’s where you’ll find them.

Artist's impression of an Australian Kaufland store.

German supermarket giant Kaufland will open three stores in Victoria, bringing further competition to local players Coles and Woolworths.

The $459 million investment to build stores in Dandenong, Chirnside Park and Epping as well as a “massive distribution centre” will be the retailers first Australian investment.

The Victorian Government said Kaufland’s decision to start it operation in Victoria was a coup for the state’s economy and would create more than 1500 jobs.

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The 115,000 square metre distribution centre in Melbourne’s north will be the largest centre in the country.

The three stores and distribution centre have all received planning approval, the government announced today.

The plan for another Australian store.

Kaufland has said it will also engage with local suppliers to stock Victorian products on its shelves.

Three further proposed Kaufland sites, at Oakleigh South, Coolaroo, and Mornington, are currently being reviewed by the state’s advisory panel.

Economic Development minister Tim Pallas said retailer provides a quality service and a level of competition to Coles and Woolworths, which can only be a “boost for consumers.”

“Everyone will have to increase their performance, competition in the retail market is vitally important and can only be good for consumers,’’ Mr Pallas said.

“Securing the investment of one of the world’s largest grocery retailers in Victoria is a clear vote of confidence in our economy, our world-class infrastructure, retail talent and retail trade growth.”

Tim Pallas says it will be a boost for consumers. Picture: AAP Image/Alex Murray

Kaufland Australia managing director Julia Kern said the retailer plans to offer Australian produce and recognisable brands. Its stores are generally large warehouses — far larger than the average Coles or Woolworths supermarket — and stock huge amount of products.

The distribution centre is due to start operating in the middle of the year, but Ms Kern said the company is yet to determine when the stores will open its doors.

“We are still figuring out our model and working out what the Australian consumer wants,” Ms Kern said.

“We want to make sure we really understand the Australian shopper and consumer then we will open a store.”

The company has more than 1,230 stores and 150,000 employees across Europe and is owned by the fourth biggest retailer in the world.