German supermarket giant Kaufland has pulled out of the Australian retail market, opting to focus its energies on the European sector.
The company revealed plans late last year to open up to 30 stores across the country and had registered close to 50 trademarks.
Evan Lucas from InvestSMART says there is more to the story – behind the scenes – than people are being told.
“People do not want to travel too far in order to do their bulk shopping,” Lucas told Ticker Today.
“The cost outlay [for bulk businesses like Kaufland] has seen yields from rent skyrocket.”
Lucas also pointed out the fact that competitors such as Aldi, Coles and Woolworths have changed their approach, in terms of how they lay out their stores.
“There is an argument that Coles and Woolworths have started to panic, and change the way they operate.
“They [both] have learnt to compete with Aldi.”