Aldi’s arch rival Kaufland has massive plans for Australia
German discount chain Kaufland has signed a range of deals to buy land in Australia, reconfirming the commitment of Aldi’s arch rival to expand Down Under.
Kaufland is part of Schwarz Group, which last year decided to bring Kaufland to Australia after perceiving an opportunity existed in the “hypermarket” space after the slow rollout of US chain Costco which works on a similar membership format.
Kaufland is believed to need 15 to 20 stores to make the investment viable.
Michael Bate, head of retail at Colliers, told Fairfax that Schwarz Group is "amassing lots of freehold sites in Melbourne, Adelaide and Brisbane at present and looking to own and build their own distribution centres".
Kaufland has reportedly set up its headquarters in Melbourne, but is still a little reluctant to release specific details about its expansion plans.
A spokeswoman for Kaufland told Fairfax: "We're sorry but we hope you will appreciate that we're still not able to give you further information at this moment."
What’s your take? Do you think another competitor would benefit Australia’s supermarket scene? Or do you remain unconvinced about Kaufland?