Kaufland to open right next door to Aldi, Coles, Big W in Queensland

Kaufland

Kaufland doesn’t shy away from a bit of competition.

The German hypermarket has confirmed plans to open its third store in Queensland, purchasing a site in Morayfield, Queensland ahead of its local launch.

What’s interesting though is the site adjoins onto the larger Morayfield Regional Shopping Centre, home to Coles, Woolworths, Target, Kmart, Big W and Aldi — retailers that trade across similar categories.

“We are committed to long term, sustainable investment in Queensland, and we are delighted to be looking at all sites and, opportunities that are available,” a Kaufland spokesperson said of the development on Wednesday.

“We look forward to continuing to work together with Moreton Bay Regional Council and all key stakeholders with the goal to deliver high quality, great service and amazing value to the wider region.”

International retail entrants haven’t shied away from setting up shop right next to local competitors in recent years —cosmetics brand Sephora and H&M being good examples — but Kaufland’s latest announcement will set up a telling test for its hypermarket model in Australia.

Owned by the world’s fourth-largest retailer, Schwarz Group, Kaufland has over a thousand locations in Europe, preferring a big-box 3,000-4,000 square metre format where it offers customers a ‘one-stop-shop’ offer that combines supermarket with discount department store.

Basically, it’s sort of like if Coles and Kmart had a rather odd-looking baby, with predictions of sharp pricing and a reputation overseas as an ‘Aldi killer’.

Kaufland has also locked in locations in South Australia, and is going through the development application process for several sites in Melbourne, amid a hiring spree in the lead up to its local launch.

Earlier this month, it filed a development application for a site in Toowoomba, Queensland, indicating local executives for the business see the sunshine state as suited to its business model.

NOW READ: Kaufland one step closer to Aussie launch with new location

NOW READ: German retailer Kaufland gets set for Adelaide: Will it close in on Target and Kmart?

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Anechidna
Anechidna
1 year ago

Why does the author seem surprised that Kaufland would be setting up Shop next to it’s competitors. I thought this was pretty well much standard commercial practice. Setting up elsewhere requires you to attract customers to a remote location versus their other shopping needs. Your competitors have already generated traffic and all you have to do is lure them into giving your store a chance to make sales and win customers.