Kaufland has claimed that it will be a tough fight when it opens stores Down Under because many Australians are parochial & # 39; to be.
The cost-effective German supermarket also said that some members of the community responded with a mix of & # 39; fear and overt hostility & # 39; against foreign franchises that entered the local market.
In a schedule submitted by The Australian the chain said it will try to lure customers away Coles, Woolworths and Aldi through a combination of loyalty programs and low prices, but warned of a tough challenge.
Kaufland, described as a cross between Coles and Target, will open 40 stores across the country from 2021 onwards
Before Aldi disrupted the market in 2001, Coles and Woolworths had a market share of 80 percent. Pictured: in a Kaufland store in Europe
Kaufland plans to open 40 stores across Australia by 2021, but some approval has been criticized by some community groups for an acceleration of approval by the Victorian Planning Minister.
"It is unfortunate that some members of the community have responded to the entry of a foreign company into the Australian retail market with not only fear, but also overt hostility," Kaufland said in response.
& # 39; Entries such as those from the Mount Eliza Community Alliance illustrate one of the greatest difficulties Kaufland will have in entering the market – the parochial views of many Australians.
& # 39; It shows how important it is for Kaufland to offer Woolworths and Coles a difference and work hard to conquer the hearts and minds of Australian shoppers. & # 39;
Kaufland said it was a & # 39; uncompromising approach & # 39; will follow to store efficiency and customer comfort to capture their share in the Australian market.
Earlier this week, the Victorian government rejected Kaufland's proposal for a giant supermarket at the entrance to Mornington.
Planning Minister Richard Wynne rejected the 4,000 square meter hub after & # 39; community consultation expressed concerns about the nature of the development and the proximity of the site to the green wedge & # 39 ;.
Designed as a one-stop shop, the hypermarket sells groceries as well as hardware such as toys, bicycles, sporting goods, electronics and household items. Pictured: in a store in Europe
Mayor Cr David Gill said the Mornington community & # 39; major impact & # 39; would have if the mega shop were given the green light.
Kaufland, with 1,300 stores in Europe, is expanding to Australia at a time when retailers are transforming here.
Just like Aldi, the German retailer will have its own unique loyalty program and at the same time lower prices for Australian consumers.
Before Aldi disrupted the market in 2001, Coles and Woolworths had a market share of 80 percent.
They now have 62 percent between them, with Aldi at 11 percent.
Kaufland CEO Patrick Kaudewitz said that Mrs. Kern was qualified for the job because of her past performance and potential
With the rise of Aldi, the introduction of Kaufland and the expansion of online retailers such as Amazon, the big two are facing more competition than ever before.
While both companies are in favor of cheap products, Aldi has its own brand and has 1,300 products in stock, while Kaufland has around 40,000 different products from different brands in stock.
Market share in supermarkets
Woolworths: 34 percent
Coles: 28 percent
Aldi: 11 percent
IGA: 7 percent
Other supermarkets: 9 percent
Other non-supermarkets: 11 percent
Source: Roy Morgan
Retail experts predict that the Coles and Woolworths chain could undercut five to 15 percent.
& # 39; We expect a price war & # 39 ;, retail consultant Brian Walker told Daily Mail Australia on Monday.
& # 39; I don't think Kaufland will quietly come on the market, they will be very aggressive because price cuts are their game & he said.
& # 39; It is difficult to predict how Coles and Woolies will react, but Australian consumers will certainly benefit from the increased competition & # 39 ;.
Designed as a one-stop shop, the hypermarket sells groceries as well as hardware such as toys, bicycles, sporting goods, electronics and household items.
At the helm of Kaufland is the 29-year-old director Julia Kern, who was appointed in May 2018 and was the driving force behind the launch of the supermarket in Australia.
Mrs. Kern has maintained contacts with companies in the run-up to the launch of the Kaufland for the past ten months.
Before being named the top job in Australia, she was previously Executive Director at Region North for the retailer in Germany.
Kaufland, with 1,300 stores in Europe, is expanding to Australia at a time when retailers are transforming here. Pictured: in a store in Europe
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