Kaufland operates over 1,300 stores across Europe. Credit: photoheuristic.info.

German hypermarket chain Kaufland has decided to exit the Australian market, making 200 employees redundant.

The Sydney Morning Herald reported that the retailer is planning an ‘orderly withdrawal’. The move will allow Kaufland to direct its efforts on operations in the European markets.

Kaufland International acting chief executive Frank Schumann was quoted by the newspaper as saying: “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.”

In September last year, the retailer announced the construction of its first 24,000m² supermarket in Prospect, Adelaide, South Australia.

The location created 150 construction jobs and up to another 100 retail jobs when completed.

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The company also revealed plans to open as many as 30 stores and had been working on securing suitable sites in the country.

Kaufland was quoted by 9news as saying: “Kaufland’s 200 Australian employees were informed of the decision today, with an assurance that generous packages including all entitlements will be offered, as part of a thorough support and consultation process for all.

“The future of Kaufland’s existing Australian investments, including properties purchased for retail outlets and distribution infrastructure, will be discussed with the relevant parties in the coming days.”

With 132,000 staff, Kaufland operates over 1,300 stores across Europe, including Germany, Poland, the Czech Republic, Romania and more. It is owned by retailer Schwarz Group.