Another German discount supermarket giant, Kaufland, is readying for an aggressive expansion into Australia with 32 stores to open in Australia by 2023. From The AFR:
The world’s fourth largest retailer, the Schwartz Group, has injected another $60 million capital into Kaufland Australia…
Kaufland, the sister chain of German discounter Lidl, is believed to have secured at least six sites – in South Australia, Victoria, NSW and Queensland – and is expected to open its first two hypermarkets in fiscal 2019…
Morgan Stanley expects Kaufland to open between seven and 10 stores in 2019-20 and about eight a year over the next five years, on sites vacated by big-box retailers such as Woolworths’ Masters and discount department stores, taking its footprint to about 32 by 2023.
According to Roy Morgan, ALDI’s 500-plus stores have already gained a 12.1% share of Australia’s grocery market:
Whereas Morgan Stanley last year noted that Aldi operates on an 18% price discount to Coles/Woolworths and expects Aldi store numbers to rise to 800 stores and its market share to grow to 15% over the next seven years.
Add Kaufland into the mix, and Australia’s once cosy supermarket duopoly is under intense competitive pressure from Germany’s heavyweights.
Dick Smith won’t be happy!
