The supermarket chain that was billed as a ‘cheap Aldi’ will now not open in Australia.
Kaufland was set to open in Australia this year and had already hired 200 staff.
The supermarket chain planned to open nine stores in Victoria, including in Bendigo and Warrnambool.
“This was not an easy decision for us,” Frank Schumann, the acting CEO of Kaufland International said.
“We always felt welcome in Australia. We would like to thank our employees and we apologise for the disruption this decision will cause.”
Owned by the German Swharz Group, Kaufland is the fourth-largest food and grocery retailer in the world.
The company will now be “concentrating its business on its European core markets in the foreseeable future”.