Schwartz Group, the world’s fourth largest retailer, said it will shelve its plans for Kaufland Australia, where it planned to open dozens of retail locations, to focus on its European business.

 

Kaufland said the fate of its 200 staff and existing Australian properties, which it purchased for retail outlets and distribution, will be discussed in the near future.

 

“This decision is about focusing business activities in Europe and is in no way a reflection of the efforts of our local employees or management, or the support Kaufland has received from the Australian business community or governments,” the company said in a statement.

 

Kaufland, the sister chain of German discounter Lidl, is believed to have secured almost a dozen store sites in Victoria, South Australia, NSW and Queensland and has established a new head office in Melbourne, on the site of a former Bunnings store, to complement state offices in Brisbane, Sydney and Adelaide.

 

The first hypermarkets, which were to carry a wide range of fresh food and packaged groceries as well as clothing and footwear, electronics, homewares, sports goods, stationery, garden products and hardware, were expected to open later this year.