German retailer Kaufland is pulling out of Australia before its first store opened.

Kaufland has announced it will withdraw from Australia after buying the site for its first store and spending months building its first distribution centre.

It says the decision was made to concentrate its business in the European market.

The first stores were expected to open in 2020.

Queensland University of Technology Business School’s Dr Gary Mortimer tells Janine Perrett the move is unprecedented.

“It surprises everybody this announcement.

“I think it just goes to show how tough and highly competitive the Australian food and grocery market really is.”

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