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6 suburbs where Aldi's biggest rival is landing

Image: Kaufland

The supermarket war is about to get bloodier: German giant Kaufland has announced a $459 million investment in Australia with plans to open stores in Victoria.

It plans to sell Australian produce and well-known brands at an affordable price-point.

The discount superstore announced today that it will establish a 110,000 square meter distribution centre in Melbourne, creating 1600 jobs.

Three stores are already approved for Dandenong, Chirnside Park and Epping in Victoria, with the discount supermarket hoping to have stores in Oakleigh South, Coolaroo and Mornington.

Kaufland will also open a distribution centre in Mickleham to aid its national expansion.

“Kaufland’s investment will boost our economy, create jobs and provide opportunities for local businesses, not to mention open up a whole new world of supermarket shopping for Victorian families,” economic development minister Tim Pallas said.

Kaufland employs 150,000 people across Europe and is the fourth-largest supermarket conglomerate in the world.

It bought its first Australian site on the fringe of Adelaide’s CBD for $25 million, where its parent company already has a presence through discount supermarket Lidl.

However the Dandenong store is expected to become its flagship store.

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