Retailpocalypse continues as Kaufland abandons Australia

Australia’s retail apocalypse continues, with German giant Kaufland announcing an “orderly withdrawal” from Australia despite sinking more than half a billion dollars of investment:

The company had been set to open as many as 30 stores in Australia and had bought a number of warehouse and retail locations around the country…

In June last year the German supermarket… celebrated the construction start of its new $255 million distribution centre in Mickleham, in Melbourne’s north.

The state-of-the-art 117,000 square metre facility was expected to generate 600 jobs in the area…

In September, the company also celebrated breaking ground on its first South Australian store, which cost $24 million and was set to create 150 jobs.

Kaufland said its existing investments, including purchased properties, would be “discussed with the relevant parties in coming days”…

The company employs 200 staff in Australia…

No doubt incumbents Woolworths and Coles are breathing a collective sigh of relief.

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Comments

  1. Mining BoganMEMBER

    Problems they see with Strayan retail or problems they see dealing with Strayan bureaucracy?

    • Latter could be more likely, plus high cost of doing business. I don’t know the space, but I would have thought budget non-discretionary retail is a goer when the economy is hitting the skids.

      • Mining BoganMEMBER

        That’s what I was guessing. Is the gubmint making thinks difficult? You know, running a protection racket for Colesworth.

        • The local council near me definitely was.
          Several of the aldi locations near me took years to start building from announcement.

    • Problems in Germany – 400,000 jobs are going as German Auto-industry collapses.

      If this website could distract itself from Xi, Scomo and Migrants for one second there are far more serious issues facing the world – and yes even the hysteria over the “VIRUS” is about migrants.

      Germany has dug itself into the classic trap of focusing on one export market to the exclusion of other manufacturing sectors which have been folding in droves. Cars and parts where all that mattered and China has simply pulled the rug out from under them with ICE cars basically being phased out in China.

      Germany is in a world of trouble .

      • Deutschland’s GDP per capita growth and unemployment numbers still look better than Australia’s.

        The world loves German cars. I don’t think their auto industry is going to disappear any time soon.

        And no, DE doesn’t just make cars.

        • Jumping jack flash

          +1 we use a ton of “German” equipment and parts to make our manufacturing machinery at the company I work for.
          Curiously much of it is made in China.

          The “German” washing machine I recently purchased was also made in some SE Asian nation – probably Thailand or Philippines, its not all that important. Its like choosing between dog food or cat food for dinner. Like pet food, it was a lot cheaper than the supposedly German built ones.

          Money talks.

          My wallet is the same size as it was back in 2007 for far more technical and specialist work than I was performing back then.

        • something is very bad. From the outset of the repo LTCM keeps coming to mind. … one day whenever that might be the whole house (read world) of cards is going to call over

      • Ask any independent mechanic what they think of German cars, particularly VW’s and don’t be shocked if you hear a few expletives.

        • SchillersMEMBER

          I’ve had a VW Passat wagon for 10 years. Done 150k and carried some heavy shit for work. Never had a problem. Not one.

      • “”Germany is in a world of trouble “”

        Good … they deserve to be for all the predatory lending to Greece etc.

    • blacktwin997MEMBER

      Fvck NOW where will i get my pretzels?

      Help us Grocery Code of Conduct, you’re our only hope!

    • Der Lebensraum not required. This is very bad news for an Australian consumer. When I’m in Europe Kaufland is my choice no 1. Aldi/Lidl for basics and Kaufland hypermarket for everything else and much more than Woolies/Coles

      • StingRay70MEMBER

        Was in Spain/Portugal Feb-Mar 2019: sister-company LIDL was incredible in terms of price and quality. Other choices were excellent too. Honestly, one can live for 1/3-1/4 of the price of Straya in those two countries. We just get ripped-and-gouged here. Now don’t start me on the price of grog in theLuckyCountry…

        #straya

  2. Interesting, makes me wonder if Australia is the real problem.
    Seems more like they’re getting ahead of the narrative, something like they know that there’s a major collapse underway in one of their core markets and they want to be able to show the big pension funds that they haven’t lost their ability to focus.
    I’ll be real surprised if the other shoe doesn’t drop within 6 months.

    • Precisely. Think NAB “Homicide” (Homeside), Bunnings UK, Masters in Oz for Woolies etc. It sounds like a “get rid of the distractions and focus” play.

  3. reusachtigeMEMBER

    Good news because we need more boutique high-end shopping experiences not cheap chain stores like krautland

  4. “”The company’s employees will be paid “generous packages” including all entitlements and will be provided with a consultation and support process. They will also be given opportunities to join the company’s European operations, where possible.””

    Moving to Europe!! LOL. But in all seriousness better to take your medicine early. Australians are naturally unfamiliar with this as the Govt loves kicking the can down the road. They hadn’t really built anything so no brand damage and they’ll be able to sell all those sites they bought – if they can sweeten the tin for the council and get it rezoned from industrial to resi they might even make a profit out of all this. Reusa would be proud!

    • China PlateMEMBER

      I’m thinking when they go to sell their sites and realise what great profit they have made they will decide to stay and diversify into a pure real estate play.

      • Maybe it was a realestate play from the beginning?
        Australia is renowned worldwide for having property that only ever goes up.

    • They were never going to fit in. Offering full redundancy packages and employment support is simply un-Australian! A true Australian company trades while insolvent, collapses then goes into receivership owing a fvck load to their employees and creditors then Phoenix’s. That’s the Australian way you German fvckwits.

  5. Nope, its simple urban economics. All the best sites have been occupied or secured by incumbent businesses. This leaves only some B grade and C grade sites for new entrants. You should see the amount of real estate Bunnings is sitting on because they wanted to lock out Masters. They are still sitting on the land keeping it undeveloped to ensure no competition can break into the market and effect their existing stores.

    If the new entrant only proposes a similar product and a similar price with no real point of difference, they cannot compete when utilising B and C grade sites.

    Kaufland also had really onerous development requirements, something like 20,000sqm for car park and shop area. Maybe 15,000sqm if basement was included. The only land available in that size is in lower socio-economic areas and so your customer base are not going to spend the $$ you need to make it stack.

    • They had already bought most of their land and had scoped out the rest.

      For anyone who has spent even a minute in places like Melbourne – the absolute and total carnage of the retail sector means that empty used and available stores are everywhere – massive ones.

      Take a one minute drive through any areas of inner Melbourne and its empty warehouse, shop, used car lot on end. Literally over the horizon. The idea that there is limited land – or Bunnings as “bought it all” is the single dumbest comment I have ever heard.

      Moreover anyone remotely connected to anything like manufacturing, warehousing etc moved out of the inner areas years ago to the fringes leaving an ocean – literally OCEANS of it abandoned as councils have maintained their zoning laws and the owners simply cant get tenants.

      The reason they have left is the Germany is going through a massive recession – something I am patiently waiting on this website to even mention if they can move on from Migrants, China and Scomo.

      • Germany is going down zee sh$tter because of opening its doors to a zillion syrian marching migrants – keep up

  6. once they found out consumers here use afterpay when they buy 1kg of sausages they realised a mistake was made.

  7. not sure how accurate this site is but apparently it is Gov Official Site that keeps updates on the coronavirus. The very forst numbers:
    1. Number of infected people.
    2. Number of suspected..
    3. Number released as they recovered.
    4. Number that did not make it.

    Edit.. forgot to provide the link:
    http://3g.dxy.cn/newh5/view/pneumonia

  8. Australia once was a desirable market and destination to holiday or live. Now, it’s increasingly being seen as what it really has become and will continue to be. A cesspit of migrants from the 3rd world and sh1thole countries such as India, China, Lebanon, Pakistan, South Sudan, Afghanistan, Syria, the worst from the former Yugoslavia etc. Countries where the culture is to take, destroy, and look after only yourself rather than improving society for all, helping others and building and creation. Australia has no future and Kaufland obviously saw this.

    • I don’t think its as simple as that, Kaufland operates even in countries like Bulgaria which are definitely shitholes – you can’t even drink the water in many Bulgarian cities, they have stray cats and dogs roaming the streets, and 6% of the population are Gypsies.

      I think instead the retail market is already pretty full in Australia. I don’t see what Kaufland can do that Aldi cannot.

    • Its going downhill for sure but the self entitled selfish boomer aussie bloke who votes for his own interests is just as nauseating as those folks

  9. Kaufland owns Lidl which was due to enter the Australian market. I see Lidl as a much bigger threat to Coles and Woolworths than Kaufland stores….

    Maybe there is a change in strategy.

    • What’s lidls modus operandi apart from plonking their god awful logo on Kittel’s botty. Party Tom
      Boonen would be shuddering

      Is it brand stuff like nakulas delicious coconut yoghurt and eaty foods’ incredible vegan burgers?

      Or some no name brand from the upper Nile delta or some such

    • Jumping jack flash

      Lidl is to Aldi what Aldi was to Woolies and Coles.

      I’m sure Lidl is a better choice for Australia given our current position.

    • Was in that store with Mrs Nut very recently, looked at each other and said “how is this viable when there’s hardly anyone in here?”. Seems we were right.

  10. they probably made more on real estate (properties they bought few years back) than they would selling stuff for years

  11. Jumping jack flash

    Krautland read the writing on the wall. They’re not stupid.
    They recently had the same experience with Greece and Spain… They know what’s coming.