Australians could be set for more international competition in the retail sector, with Aldi's arch rival Schwarz Group taking steps to set up Down Under.
Fairfax Media can reveal that the giant retail group let up by German billionaire Dieter Schwarz recently sought to trademark the word "Kaufland" in Australia.
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Consumers the real winners with Aldi growth
A mushrooming of Aldi stores across Australia has other Aussie supermarkets looking over their shoulders.
Kaufland is a "hypermarket", or a one-stop-shop selling groceries and general merchandise such as bikes and car maintenance supplies. Known for its aggressive pricing, it sells brands and its own discount label.
The Australian trademark application was lodged in July and covers everything from alcohol to tobacco, pharmacy, musical instruments, sports equipment, garden, vehicles, financial services and insurance.
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Kaufland is the sister company of discounter Lidl, which has also been applying for trademarks in Australia this year but has denied to European press that an Australian Lidl launch is in the works.
Combined, the Schwarz Group is the the third-biggest grocer in Germany, with €34.5 billion ($49.4 billion) in annual sales, compared with Aldi Group's €27.8 billion.
The application will raise eyebrows as the secretive and privately owned Kaufland has only expanded into eastern Europe.
Kaufland has not responded to Fairfax Media's request for comment, but has confirmed to Lebensmittel Zeitung's German Retail Blog that is is sounding out the Australian market.
It's understood a decision to enter Australia has not been finalised.
Schwarz Group setting up Kaufland stores in Australia would not preclude it from opening Lidl stores also, it's believed. Kaufland and Lidl are run separately despite the common ownership.
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