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Supermarket wars: Kaufland ramps up its presence with $459m warehouse

German supermarket giant Kaufland will build a super-sized distribution centre, one of the largest of its kind, in Melbourne’s northern industrial suburbs as it ramps up its retail presence in Australia.

Kaufland is part of the world’s fourth-largest grocery conglomerate.

Kaufland is part of the world’s fourth-largest grocery conglomerate.

Kaufland, part of the world’s fourth-largest grocery conglomerate, will invest $459 million to construct a massive 110,000 square metre, purpose-built, warehouse on land it purchased in Merrifield Business Park, a Mickleham industrial estate owned by MAB Corporation and Gibson Property.

The group has yet to appoint a builder to construct the distribution centre, which will include a temperature-controlled storage area, automated warehousing and a 40-metre high-bay storage area, along with 3600 square metre office space.

It will service a network of “hypermarket” stores the chain has begun building in Australia’s eastern states, Kaufland’s managing director Julia Kern said.

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