German supermarket giant Kaufland has decided to withdraw from the Australian market to better focus on its business in Europe.

The decision leaves 200 Australian employees and the future of a number of planned locations across the country in limbo.

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The chain, which is the fourth biggest retailer in the world, had just last year announced plans to open between eight and 12 stores in 2020.

Kaufland says the fate of properties purchased for retail outlets and distribution infrastructure will be discussed in coming days.

A general view of the Kaufland building site at Prospect in Adelaide, Wednesday, September 4, 2019. The giant supermarket store Kaufland is building its first store in South Australia in Prospect. AAP Image/David Mariuz) NO ARCHIVING. Credit: DAVID MARIUZ / AAPIMAGE

An artist’s impression of a Kaufland store in Australia. Credit: Kaufland

“This decision is about focusing business activities in Europe and is in no way a reflection of the efforts of our local employees or management, or the support Kaufland has received from the Australian business community or governments,” Kaufland said in a statement.

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Frank Schumann, acting CEO of Kaufland International, has apologised for the “disruption”.

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“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.”

Kaufland is currently operating in Germany, Poland, the Czech Republic, Romania, Slovakia, Bulgaria, Croatia, and the Republic of Moldova with roughly 1300 stores and 132,000 employees.