Kaufland has decided to undertake an “orderly withdrawal” from the Australian market.
The decision was revealed on Wednesday “after careful and thorough consideration”.
According to the German supermarket giant, it will be concentrating its business on its European core markets in the foreseeable future.
It is said that Kaufland’s 200 Australian employees will be offered “generous packages” including all entitlements, as part of a thorough support and consultation process for all.
“This was not an easy decision for us,” Kaufland International Acting CEO Frank Schumann said.
“We always felt welcome in Australia. We would like to thank our employees and we apologise for the disruption this decision will cause.
“We would also like to thank our business partners, who offered us great support over the last few years. We would also like to thank the government for being very open-minded to our projects.
“In Europe, we see a great deal of growth potential. We will actively shape the consolidation of the European retail sector, thus further reinforcing our leading position.”