German supermarket chain Kaufland is on its way to the northern suburbs, with the company set to build its distribution centre in Mickleham and open one of its first three Australian stores in Epping.

Kaufland Australia managing director Julia Kern announced on Friday that the company would invest $459 million to build a distribution centre and headquarters at Merrifield Business Park and open stores at Epping, Dandenong and Chirnside Park.

The Epping store will be built on the former Bunnings site on High Street, after planning approval was granted by the state government.


Kaufland will be opening one of its first Australian stores in Epping. (Supplied).

Ms Kern said the developments would create about 1600 jobs, 600 of which would be in Mickleham. The company is in the process of seeking approval for three other stores – in Coolaroo, Oakleigh South and Mornington.

Ms Kern said Kaufland would offer local produce, well-known brands and private label products.

“Kaufland will be a one-stop destination supermarket,” she said. “Our aim is to provide all Australians with more service and

“We look forward to continuing our commitment to partner with local businesses and the wider community to ensure we create the best outcome possible.”


Victorian Treasurer Tim Pallas said Kaufland’s distribution centre would be the largest distribution centre in the country at 115,000 square metres – or almost six times the size of the MCG.

“This is a huge notch on Victoria’s belt,” he said. “Kaufland’s investment will boost our economy, create jobs and provide opportunities for local businesses.”

Construction of the distribution centre is expected to start in May or June.


Kaufland says it will provide a variety of products for Australian consumers (supplied).

It is not known when construction of the first three stores will commence.

Yuroke MP Ros Spence said the distribution centre would provide a welcome jobs boost for the local area.

“[This is] yet another opportunity for the thousands of people that are moving to this growing suburb to have employment just on their door step,” she said.