Retail Giant Kaufland Enters Australia with Strategic $25 Million Acquisition

German retailer Kaufland has snapped up the sprawling Le Cornu site on Anzac Highway in Adelaide for $25 million for its first major Australian supermarket. 

The prime 3.6 hectare Forestville site on Adelaide’s south-west corner fringe had been a furniture warehouse and showroom and was earmarked for disposal following the death of the Le Cornu family patriarch Lance Le Cornu in 2013.

Kaufland is part of Germany’s giant Schwarz Group and is one of the world’s largest retailers. Kaufland has over 1200 stores in Europe which are, on average, five to six times the size of a Coles or Woolworths store. The stores combine a large supermarket with general merchandise retail like a Kmart or Big W.

Kaufland is following in the path of Aldi in entering the competitive supermarket business in Australia. Aldi has established 500 stores in Australia since 2001, mainly on the east coast but is expanding in South Australia and Western Australia.

Kaufland Australia has been looking for suitable sites in Australia before settling on the Adelaide purchase -- the retailer posted a statement on its website indicating that it "has an ambitious Australian investment and development program".

The statement went on to say that its ideal site size in Australia ranges between 15,000 square metres and 20,000 square metres, with car parking for 200-300 vehicles. The stores can stock up to 60,000 product lines.

The Adelaide sale was jointly handled by CBRE and JLL.