Warrnambool councillor Peter Hulin says supermarket giant Kaufland's decision to exit Australia is disappointing for the city.
It was expected a new mega store on Raglan Parade would create up to 100 jobs, plus more during construction, however the German-owned Kaufland announced on Wednesday it was exiting the Australian market.
Cr Hulin, who has travelled extensively to Europe, including Germany, said a Kaufland store would have been a coup for Warrnambool.
"Kaufland is an amazing supermarket," he said.
"I go to Kaufland supermarket every time I go and stay with my parents in-law.
"It's so different to a normal supermarket.
"The people of Warrnambool and Australia have really lost out because it's not going ahead."
Kaufland had proposed a new 4000 square-metre supermarket at 69-83 Raglan Parade on vacant land near a motel in the city's east.
Cr Hulin said the stores were massive, and south-west shoppers would have been impressed with the supermarket.
"It's two-storeys down one end and it has absolutely everything you could possibly think of. The only thing it doesn't sell is a car," he said.
"It has so many services such as butchers and independent stores. It's amazing place. It has all the recycling areas built into it as well."
He said it was disappointing Kaufland was exiting Australia, as another supermarket competitor would help lower prices.
"I am staggered with what we pay in Australia compared to what the Europeans pay. So many things are cheaper, people just wouldn't believe it.
"I think it's almost 100 per cent more in Australia."
Mayor Tony Herbert said it was "obviously disappointing" to hear Kaufland was pulling out of Australia.
"Warrnambool was one of only a handful of locations in Victoria chosen by Kaufland to open one of its stores, which I think speaks volumes about the economic strength of the city," he said.
"This is one of the world's largest retailers. The research they would have put in to their selection of Warrnambool would have been substantial."
He said Warrnambool was Australia's most liveable city and "a strong retail sector plays a major part in that".
"Warrnambool's retail sector is growing. It's up to almost $1 billion in transactions each year," he said.
"We are also seeing that 'escape spend' is decreasing, which means that more people are finding what they need to buy locally instead of having to travel to larger cities like Geelong or Melbourne."
Last year council chief executive officer Peter Schneider welcomed Kaufland to Warrnambool.
"They have an understanding of Warrnambool's role as a major regional centre serving a larger population," he told The Standard.
Warrnambool City Council and mayor Tony Herbert have been contacted for comment.
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