Kaufland lands location for flagship

KauflandSchwartz Group owned grocery chain Kaufland has just paid $25 million for an iconic retail location on Adelaide CBD’s outskirts, a sign that its local launch is imminent.

Its initial flagship offer will be based out of the 36,000sqm former Le Cornu site on the Anzac Highway in Forestville, located approximately three kilometres from the CBD.

Schwartz, one of the largest retailers in the world and the owner of Aldi-rival Lidl, has been looking to bring its Kaufland hypermarket concept Down Under for several months after concluding a feasibility study locally.

Kaufland retails on a model closer to that of Costco rather than Aldi, favouring warehouse style stores between 15,000sqm and 20,000sqm that offer a one-stop-shop offer to customers, including in-store cafes and soft/hard goods such as sporting equipment alongside groceries.

It’s called a Hypermarket model in Europe, where Kaufland has been wildly successful in recent years, moving from its traditional eastern-European markets out into English-speaking western European markets.

The business now employs over 150,000 people globally and has its eyes firmly placed on Australia’s $90 billion supermarket industry, representing the third major international competitor, alongside Aldi and Costco, to attempt a run at Coles and Woolworths control on the local market.

JLL and CBRE brokered the sale for the property on behalf of the Le Cornu family. Kaufland has been busy looking for property in Australia for several months, but analysts previously outlined concerns that the business may find it difficult to locate sites that suit its large-format model. Kaufland requires a minimum 10,000sqm store, with around 200-300 car parks.

Kaufland, JLL and CBRE have been contacted for comment.

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