German supermarket giant Kaufland will establish a distribution centre in Melbourne’s north as part of its move into Victoria, creating 1600 jobs.
The retailer announced on Friday an initial $459 million investment to bring stores to Victoria, with three already approved for Dandenong, Chirnside Park and Epping.
A new distribution centre, almost six times the size of the MCG, will be built in Mickleham as the company looks to open stores across the country in coming years.
A further three stores are proposed for Oakleigh South, Coolaroo and Mornington, subject to approval.
Kaufland, which has received state government help to set up shop in Victoria, says it’s engaging with local suppliers to source products locally, where possible.
Economic Development Minister Tim Pallas hailed its arrival as a vote of confidence in the economy.
‘Kaufland’s investment will boost our economy, create jobs and provide opportunities for local businesses, not to mention open up a whole new world of supermarket shopping for Victorian families,’ he said.
Construction of the Mickleham distribution centre is expected to also create jobs for local builders, workers and apprentices.
Kaufland, which has more than 1,230 stores and 150,000 employees across Europe, is the latest global retailer to choose Victoria as its entry point into the Australian market, after Costco, Aldi, Uniqlo, H&M and MUJI.