CHAIN TO ABANDON OZ PLAN
Supermarket giant intending to build in Toowoomba exits Australian market
PLANS for a mammoth 6000 sq m supermarket on Anzac Ave have been scuttled after international retail giant Kaufland yesterday announced it was pulling out of Australia.
The company lodged a development application for the store in August last year.
The company’s withdrawal comes after it spent millions on properties, administration and hiring staff in Australia.
Toowoomba Chamber of Commerce CEO Todd Rohl said the news was disappointing, and he lamented the loss of jobs and opportunities the withdrawal represented.
FOR GERMAN retail giant Kaufland, it appears Australia was a continent too far.
The supermarket chain yesterday announced it was scuttling plans to expand down under, pulling the pin on the 20 sites it had planned to open across the country, including Toowoomba.
Toowoomba Chamber of Commerce CEO Todd Rohl said it was disappointing to lose a large format retail store.
“What they do for the community is provide additional choice and diversity and ultimately increase competition, which in theory would reduce prices,” he said.
“With that as the context, in a time where there’s still increasing cost of living pressures – electricity bills are going up, and so on – and the region is in drought, to lose that type of business I think is a loss for the city, and a loss for the community generally.”
Mr Rohl also lamented the loss of construction jobs, supply chain opportunities, and operational jobs that the withdrawal represented.
“It’s the construction supply chain, its all the suppliers that potentially would have contributed to the centre, whether during construction or after, then of course jobs for people in Toowoomba. That is the disappointment,” he said.
Kaufland, a subsidiary of the Schwarz Group, the world’s fourth largest retailer, had submitted plans to Toowoomba Regional Council for a 6024 sq m store and an adjacent 350 sq m bottle shop on land at 353-359 Anzac Ave.
A company spokesman previously said Kaufland Australia was “committed to long term, sustainable investment in the Toowoomba region”.
After spending millions buying up on property, administration, and hiring staff, the company yesterday announced it was walking away from its entire plan.
The company said in a statement it will undertake an “orderly withdrawal” from Australia and that it would be concentrating on its European core markets.
In Queensland, Kaufland had bought four sites – Toowoomba, Richlands, Morayfield and Burleigh Heads.
Frank Schumann, acting CEO of Kaufland International, said: “This was not an easy decision for us. We always felt welcome in Australia.
“We would like to thank our employees, and we apologise for the disruption this decision will cause.
“In Europe, we see a great deal of growth potential. We will actively shape the consolidation of the European retail sector.”