'Deteriorating market': Why Kaufland pulled the plug on its Australian dream

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Lacklustre local retail conditions and trouble on Kaufland's homefront were behind the German giant's shock exit, says former Myer boss Bernie Brookes.

"When [Kaufland] first started this venture about three or four years ago, they were performing very well, making more profits, but their world has since changed."

"While it's an expensive thing to lay off 200 people and close sites they were looking to open, it's probably a smarter thing to do than have a big hole of money that they're going to pour more money in over the next few years," he said. The mature nature of Australia's commercial property market and scarcity of big 20,000 square metre sites favoured by the retailer made its business model difficult to execute, he said.

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...one hell of a‘plug’

LNPfail JoshFrydenberg wrecked our economy. Retail businesses are going broke. Consumer spending is down. They LNP tax stimulus was a failure. Now costs are soaring thanks to LNPClimateCriminals & AustralianBushfiresDisaster How good is LNPCrimeFamily ? auspol ausecon

Probs because our leaders are so greedy they want nobody here to have money so nobody has power or a say. Due to that there's no economy anymore because our pm and premier sold everything and spend elsewhere instead of our own country. Now we have nothing.

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German supermarket giant pulls out of Aussie marketGerman supermarket giant Kaufland has pulled out of the Australian retail market, leaving hundreds of staff out of a job. 9News
Source: 9NewsAUS - 🏆 10. / 72 Read more »