German supermarket giant Kaufland is scouting sites in Warrnambool.
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The council's director of city growth Andrew Paton said council officers had met with representatives of Kaufland and toured them around the city.
"They were interested in Warrnambool and attracted by the role our city plays as a centre serving a larger regional population," he said.
"It's an encouraging sign to have new retailers interested in establishing a presence in Warrnambool."
Commercial real estate specialist Danny Harris from Harris and Wood said he had engaged in talks with the company regarding potential sites.
"Nothing has yet been confirmed," he said.
"I think it would be a fantastic addition to Warrnambool's economy.
"My belief is that there would be 100 jobs created should they come."
A Kaufland spokeswoman remained tight-lipped about the supermarket's plans.
"We are currently exploring and discussing options throughout regional Victoria and we look forward to seeking out further sites and opportunities as we continue our expansion in Australia," she said.
The Kaufland Australia website says the supermarket is looking for stores across the country.
"Kaufland has an ambitious Australian investment and development program and we are always looking to purchase suitable and appropriate sites," it says.
"We look forward to hearing from you with any information on prospective sellers or sites."
The website says plot requirements for a supermarket site must be a minimum of 17,000m, however the preferred size is 25,000m to 30,000m.
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