Multinational giant supermarket chain Kaufland has abandoned its push into Australia, including an under-construction ‘one-stop shop’ in Dandenong.
Greater Dandenong mayor Jim Memeti, who had opposed the project, said the news would please rival small-business owners but not consumers seeking “good value” competition.
“I find it hard to comprehend Kaufland would spend so much money and just walk away – after all the lengths that they went to.”
Those ‘lengths’ included successfully requesting the State Government to rezone its site on the corner of Gladstone Road and Princes Highway, as well as demolishing the former Bunnings store.
It had also won approval for stores in Epping, Chirnside Park, Oakleigh South and Coolaroo, will plans for up to 25 others across Australia.
In Dandenong, Kaufland were to build a 6660-square-metre retail complex including a supermarket, liquor outlet and food hall.
It was said to be a one-stop shop, many times larger than a Coles or Woolworths store.
Meanwhile, a “small army” of business owners, who opposed the project, claimed victory.
“The small army beats the German giant,” said a staff member at Menzies Cellars.
Liquor outlet and supermarket owners in Menzies Avenue, Hemmings and Brady roads had feared that Kaufland would destroy their livelihood.
Several were concerned that Kaufland was proposing a “massive” liquor outlet through the “back door”, bypassing the local council planning process.
Economic Development Minister Tim Pallas, in approving the project, described the supermarket’s arrival as a “huge notch on Victoria’s belt”.
Cr Memeti said there would now be questions about what will happen to the huge vacant site.
“I think a Costco would be nice.”
Kaufland International has stated that it was exiting Australia to concentrate on its European business.
