The Standard revealed in June it was scouting sites across Warrnambool and on Thursday said it would seek approval for a new supermarket at 69-83 Raglan Parade, which is vacant land near a motel in the city's east.

The company has described itself as a "one-stop" destination supermarket, saying its 4000-square metre store will focus on fresh produce.

It will offer a bakery and fresh hall, as well as a number of independent local businesses, such as cafes, smaller food outlets or pharmacies.

Warrnambool City Council chief executive officer Peter Schneider welcomed Kaufland's commitment to Warrnambool.

"Kaufland's interest in Warrnambool demonstrates that the supermarket operator sees a bright future for our growing city," he said.

"It's encouraging to see new businesses interested in establishing a presence in Warrnambool.

"They have an understanding of Warrnambool's role as a major regional centre serving a larger population."

Kaufland stores offer a bakery and fresh hall, as well as a number of independent local businesses, such as cafes, smaller food outlets or pharmacies.

It is understood the site sold was for about $2 million in 2017.

In June 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."

Kaufland's Victorian expansion is gathering steam, with the global supermarket chain receiving approval for a further two stores and proposing at least nine more, which - if approved - could deliver hundreds of extra jobs.

Minister for Economic Development Tim Pallas today announced the go-ahead for stores in Coolaroo and Oakleigh South, with the latter to also hold Kaufland's headquarters.

Kaufland has announced plans to build at least nine additional stores across Victoria - in Braybrook, Lyndhurst, Geelong, South Morang, Bendigo, Narre Warren, Warrnambool, Coburg and Pakenham.

The state government has referred the proposals to an independent advisory panel for consideration.

All approvals will be exhibited for public comment and be subject to public hearings which will help inform the advisory panel's report to the Planning Minister.

Mr Pallas said it was great news for consumers.

"Another major player in the market will provide more choice for Victorians, more value for money at the checkout and create thousands of jobs," he said.

Kaufland Australia managing director Julia Kern said it was committed to the state.

"With five approved stores, as well as the additional nine sites under review, we are committed to our long term, sustainable growth across Victoria," he said.

"We look forward to creating thousands of jobs and creating opportunities for local businesses."

Kaufland's investment in Victoria is worth $435 million and expected to create 1500 jobs.

If the nine stores are approved, the investment will top half a billion and create up to 2,400 jobs.

One of the world's largest retailers, Kaufland chose Victoria as the starting ground for its Australian expansion, joining the likes of Costco, Aldi, Uniqlo, H&M and MUJI.

The supermarket giant is already engaging with Victorian suppliers, so it can source local products where possible and will provide opportunities for complementary independent retailers such as cafes within shopping complexes.

Their investment will also benefit the construction industry, with the distribution centre and stores set to create hundreds of opportunities for local construction businesses, workers and apprentices.

MORE TO COME.