German discount supermarket giant, Kaufland, has won approval to build two more superstores in Melbourne, with its sights set on opening a total of 14 in Victoria:
The state government has given the supermarket chain the green light to open stores in Oakleigh South and Coolaroo, in addition to three stores already approved for Dandenong, Chirnside Park and Epping.
Kaufland, which also owns Lidl stores, has also lodged applications to open another nine supermarkets in Highton, Braybrook, Coburg North, South Morang, Narre Warren, Lyndhurst and Pakenham, as well as Warrnambool in the state’s west and the Bendigo suburb of Kennington.
Kaufland’s hypermarkets are described as being a cross between a supermarket and a Kmart, a one-stop shop selling both supermarket staples and extras like bikes or car maintenance supplies at discount prices…
However, it will still be another two or three years before Victorians can expect to set foot in one of them.
According to Roy Morgan, ALDI’s 500-plus stores have already gained a 12.1% share of Australia’s grocery market:
Whereas Morgan Stanley previously 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!
