Kaufland Dandenong site abandoned after shock announcement
A 6660 sqm site being prepared to house a Kaufland supermarket will be sold following the shock announcement the German retail giant had ditched plans to enter the Australian market. So what will become of the land?
South East
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It’s tools down at the Dandenong site earmarked for a Kaufland supermarket as the supermarket chain abandoned its bid for a slice of the Australian market.
The German grocer, which promised to shake up the nation’s $110 billion supermarket sector, announced on Wednesday it would not be opening stores in Australia but had decided to focus on its “European core markets in the foreseeable future”.
The $459 million investment was to build stores in Dandenong, Chirnside Park, Epping, Oakleigh South and Coolaroo.
The 6660 sqm Dandenong site was to include a supermarket, food hall and liquor outlet.
Kaufland had also lodged a planning application with Bayside Council in October, with plans to open at 270-276 Bay Rd.
Work at Dandenong’s at Gladstone Rd and Princes Highway site had already begun including deep excavations.
Greater Dandenong Council mayor Jim Memeti told Leader the community was “disappointed” by the shock announcement.
“Dandenong residents were excited because Kaufland was going to offer good quality products at a competitive price,” Cr Memeti said.
“There are now mixed calls from the community for a university, Costco and even apartments on the site.
“If I had a preference I think a university would be great on the site.”
Cr Memeti said local businesses in the area were also “thrilled” by the news.
“Small businesses including supermarkets and liquor outlets in Menzies Ave, Brady Rd and Hemmings St were really opposed to this at the start – so they’re really pleased with this news.”
He said he hoped the site would not stand vacant for long.
“The last thing I want to see for that large site is for it to just sit there – that will be so disappointing,” he said.
Labor member for Dandenong Gabrielle Williams MP said she hoped to see a development at the site “that leads to job opportunities for local people.”
In a statement on Wednesday, Kaufland’s acting chief executive Frank Schumann said the closure was “not an easy decision”.
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“We always felt welcome in Australia. We would like to thank our employees and apologise for the disruption this decision will cause,” Mr Schumann said.
“In Europe, we see a great deal of growth potential. We will actively shape the consolidation of the European retail sector, thus further reinforcing our leading position.”