Kaufland hotel Toowoomba

Kaufland to open hotel & hypermarket in Queensland

August 8, 2019
By Alana House

An application has been submitted to Toowoomba Regional Council to build the first Kaufland hotel and hypermarket in Queensland.

The development application notes it will comprise a “shopping centre including supermarket, speciality shops, food and drink outlet and a hotel”. The pub will be situated on the hypermarket site in a stand-alone location with provision for 80 car spaces.

The application was filed last Friday for 353-359 Anzac Avenue, Harristown.

An artist’s impression of the Kaufland Toowoomba hypermarket development with freestanding hotel.

The unique attributes of use include: a large format retail offering anchored by a supermarket notably bigger (ie having a GFA of 6000m2 – 7000m2) than most Australian supermarkets); an integrated product line mix “which extends beyond that typically included in competing supermarkets” offering both national and international brands, including new brands that Kaufland will bring into Australia; an extensive range of local fresh food and groceries; and a range of complementary non-food goods.

The application noted it would also have a limited range of associated speciality retail tenancies, a food and drink outlet and “a hotel use associated with an integrated grocery, food, hospitality and liquor offering”.

The development will operate between 6am and 10pm, seven days per week.

The inclusion of a pub is a result of Queensland liquor laws stipulating that to obtain a liquor licence for a bottle shop, the owner must already hold a commercial hotel licence for a pub within 10km.

The German supermarket giant, which is owned by the fourth largest retailer in the world, Schwarz Group, had previously been focusing its development efforts on Victoria and South Australia.

In March, Kaufland Australia received planning approval for its first three stores in Victoria at Chirnside Park, Dandenong and Epping. In April, the retailer was granted development approval to build its first South Australian store in Prospect, Adelaide.

In June, Kaufland turned the first sod on its distribution centre in Mickleham, Victoria. When completed it will be Australia’s largest distribution centre.

Morgan Stanley estimates, based on Europe penetration, Australia could support as many as 295 Kaufland stores longer term and that its annual sales in Australia could hit more than $3billon from 56 stores within six years of its first store opening.

Kaufland liquor sales predicted

According to a report prepared by Anthony Dimasi, Managing Director, Dimasi & Co, for Kaufland Australia, the impact of its proposed Victorian store at Mornington on existing supermarket facilities within the trade area is estimated to be 5%-6%.

Kaufland liquor department.

“The Kaufland store is estimated to achieve a market share of total retail expenditure across the main trade area which it is expected to serve ranging from 3% – 3.3%,” it said. “In food and groceries, the store is expected to achieve a market share of 5.5% – 6.1%, while in packaged liquor its estimated market share would fall within the range 5.7% – 6.3%. In all other retail categories the store’s market share will be minimal.”

“These impacts are highly likely to be experienced primarily by the two largest supermarket and grocery store chains in Australia – Woolworths and Coles. Both of these groups are very large, highly successful and very well placed to counter any competitive intensity that will result from
the entry of Kaufland into the Australian market.”

According to the report, the anticipated sales performance for each new Kaufland store in Australia is expected to fall within the range $40 – $50 million. Approximately 70% of store sales are expected to be in food and grocery items, with the remaining 30% comprising sales of non-food items, being around 20% of store sales in general merchandise items and around 10% in packaged liquor.

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