Here comes Kaufland

A GERMAN supermarket giant looks set to take over a huge warehouse site previously used by Bunnings at Burleigh, sparking celebrations among traders at the southern Gold Coast.

Kaufland could be putting down roots soon at the 3.28ha warehouse site at 197 Reedy Creek Rd with reports of an unconditional contract to buy the $20 million property.

Central Chamber of Commerce president Martin Hall said the mega-supermarket, which would rival Coles, Woolworths, Aldi and IGA, had the potential to draw visitors from across the border.

“Especially because of where it is, it will be a big attraction for northern NSW as well,” he said.

“Burleigh is well positioned for everyone really. We’re always happy to support new industries like that.”

Mr Hall said Kaufland would increase competition among retailers, which would bring down prices for consumers.

Not surprisingly, observers say Kaufland will shake up the $90 billion grocery sector.

“We’re very confident it will bring in more people to the region,” Mr Hall said.

“It’s a big vote of confidence for the Gold Coast. The chamber firmly believes it’s a big high five for the area (being) able to attract such a high-calibre business to the Coast.”

Mr Hall said the site was also a high value area and a “great investment”.

Kaufland is a subsidiary of the Schwarz Group, the world’s fourth largest grocery conglomerate, which also owns Lidl.

Kaufland employs more than 150,000 workers across Europe, with each shop capable of stocking up to 60,000 product lines.

The company’s website says Kaufland has an “ambitious Australian investment and development program”, with plot requirements for the hypermarket a minimum of 15,000 sq m, but up to 25,000 sq m was preferable. It also needs enough space for 400 car parks.

Kaufland is recruiting for management jobs in Sydney and Melbourne.