Kaufland adds $45m to Oz plans

GERMAN supermarket interloper Kaufland has received a fresh capital injection, taking its local war chest to more than $88 million as it begins its assault on the grocery sector.

Kaufland’s German head office tipped an extra $45 million into Kaufman Australia this month, taking its paid-up capital to $88.4 million.

Kaufland’s first warehousestyle supermarket will be in Adelaide.

Its shopping experience has been described as a mix between Aldi and Costco, minus the monthly membership fee the latter charges.

Stores generally span 20,000sq m – more than five times larger than the average Coles or Woolworths – and sell 60,000 goods ranging from cheese slices to car tyres at discount prices.

It also insists on buying rather than leasing its sites.

Kaufland is part of the Schwarz Group, the fourthlargest retailer in the world.

Aldi has built a network of close to 500 stores since entering Australia’s $90 billion grocery sector in 2001.

Kaufland’s local website says it has “has an ambitious Australian investment and development program” and it is looking to buy sites from 10,000sq m to 20,000sq m with parking for 200 to 300 cars.

Its arrival adds to the pressures facing local giants Woolworths and Coles since the arrival in the country of overseas competitors including Aldi and Costco.