Discounter Kaufland has announced it has made a 'strategic decision' to withdraw from the Australian market, to focus on its core European businesses.
The retailer said that it made the decision following 'intensive examination' of its business.
'Not An Easy Decision'
“It was not an easy decision for us," commented Frank Schumann, acting CEO of Kaufland. "We have always felt welcome in Australia."
The announcement comes following an announcement last September that Schwarz Group-owned Kaufland was planning to open 30 stores across the country, and had registered a number of trademarks and brands with IP Australia.
Some 14 stores were set to open in Victoria, three in Queensland and two in South Australia, according to the company's plans.
The decision to cease operations in Australia affects approximately 200 employees in its operations there.
“We would like to thank our employees and business partners, who have given us intensive support in the past few months," Schumann commented. "We also thank Australia's politicians, who have always been very open to our plans."
'Growth Potential'
Schumann added that the group sees "great growth potential" for its European operations.
"We will actively help shape the consolidation of the European retail sector, thereby further strengthening our leading position," he said.
As well as its home market of Germany, Kaufland is present in Poland, the Czech Republic, Romania, Slovakia, Bulgaria, Croatia and the Republic of Moldova, with around 1,300 branches and 132,000 employees.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
