German company Kaufland has bought the iconic Le Cornu site in Adelaide.
Kaufland is a subsidiary of the Schwarz Group, which is the world’s fourth-largest retailer. It can stock up to 60,000 product lines and operated more than 1,230 stores and 150,000 employees across Europe.
The German retailer paid $25 million for the 36,000 square metre Le Cornu site on Anzac Highway in Forestville. The sale was handled jointly by CBRE and JLL.
The Forestville Le Cornu, one of SA’s iconic stores, first opened at Anzac Highway in 1973 and closed last October.
Prior to housing Le Cornu, the site served as the former Chrysler assembly plant.
Russell Zimmerman from the Retail Traders Association told ABC News that Kaufland has been interested in entering the Australian market for some time.
“It’s certainly been on the radar for them for quite a while to come to Australia and can I say that quite honestly that’s not unusual because there’s lots of retailers looking at Australia,” Zimmerman said.
“I think what’s most interesting in this particular instance is that it would appear that South Australia will be their first,” he added.
With Aldi and Costco already here, Amazon on the way and online shopping increasing in popularity, retail competition is hotter than ever.
Although there is no official word on when Kaufland will open, The Australian reports that a recent UBS survey predicted that Kaufland would have physical presence in Australia by 2020.
“We are a growth-oriented corporation continually assessing our expansion possibilities in existing and potential markets,” the Kaufland site currently says. “With this in mind, we are currently conducting a feasibility study by analysing the Australian market.