Construction underway for Kaufland's first Adelaide store

Construction underway for Kaufland's first Adelaide store

European hypermarket giant Kaufland has today started construction on its first store in South Australia, within a week of announcing two more store confirmations in Victoria.

The group owned by one of Germany's richest men Dieter Schwarz is in the midst of a massive roll-out in Australia, its first outside Europe. 

Like Lidl which is also owned by the mogul's Schwarz Gruppe, Kaufland has disrupted retail markets wherever it has gone but with a "one-stop destination supermarket" approach and very large stores.

Australian operations will be supported by a 115,000 square metre distribution centre being built in Mickleham, Victoria - a state where five Kaufland stores have been confirmed and a further nine are under review. The company has also acquired three sites in South East Queensland.

Kaufland Australia managing director Julia Kern and South Australian Premier Steven Marshall stood together today to celebrate construction kicking off for the store in Prospect, north of Adelaide.

"We would like to thank everyone who has helped us achieve this incredible milestone. Kaufland Australia is proud to call Prospect home," says Kern.

"To be building one of our first stores in Australia, here in Prospect, reflects our passion and desire to grow with this incredible state."

The retailer has planned a $24 million investment in the store, which it expects will generate 150 jobs in the construction phase and 100 new jobs once operational.

Kaufland said Prospect will be one of two Australian stores that will start out initially as testing facilities, with the other potentially being Dandenong or Epping in Victoria.

Kaufland Australia has also received planning approval for the previous Le Cornu site in Forestville, South Australia, and has an additional site in Paradise submitted for development approval.

"We look forward to generating local jobs, creating opportunities for businesses and suppliers, and continuing to grow organically in the community as a result of our long-term investment in South Australia," says Kern.

"South Australia is home to amazing produce, and we are looking forward to showcasing some of the world-class produce as a part of our range.

"So far, we have had great conversations with local suppliers, and we look forward to continuing to partner with local businesses wherever possible."

Established in 1984, Kaufland has 1,200 stores in eight countries - Germany, Poland, the Czech Republic, Romania, Slovakia, Bulgaria, Croatia and Moldova.

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