M83 Kaufland Stores in Victoria Advisory Committee - Request to be heard?: Engage Victoria

Kaufland Stores in Victoria Advisory Committee              M83
                                    Request to be heard?:

Full Name:           Janet Street
Organisation:
Affected property:
Attachment 1:
Attachment 2:
Attachment 3:
Comments:            Attached

Submission Cover Sheet

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               Submission to the Kaufland Advisory Committee 2019
My name is Janet Street and I reside at

I oppose the Kaufland proposal for development of a hypermarket on the site at 1158 Nepean
Highway, Mornington. I oppose any rezoning of the land at 1158 Nepean Highway, Mornington.

I support the submission by Harwood Andrews on behalf of Mornington Peninsula Shire Council
which sets out opposition to the proposal made by Kaufland Australia Pty Ltd for the site at 1158
Nepean Highway, Mornington.

Kaufland, a subsidiary company of the Schwarz Group, a private family owned German company, is
bullying their way into the Australian retail market. They have had no relationship with Australia in
the past, have no respect for our current planning processes and have had no discussion with local
residents, businesses, local government authorities in the areas they are choosing to ‘set up shop’.
In particular, Kaufland has had no discussions with local people to get a feel of what they want, of
what they need. The proposal is based on what they want.

My objection to the proposal for a Kaufland hypermarket on the site at 1158 Nepean Highway,
Mornington include many areas of concern. I say the following with regard to the proposal.

The ‘big box’ shopping experience for the Australian retail market with regard to food and grocery
items including alcohol sales is not one which the majority of Australians want nor enjoy. It is a
dying failed approach to the retail shopping experience. See article below.

https://www.abc.net.au/news/2019‐03‐15/big‐box‐retail‐struggling‐as‐shoppers‐shift‐to‐online‐
sales/10900916

Personal Negative Impact by the Kaufland Development

I have and will continue to be personally negatively impacted by the Kaufland imposition of a
hypermarket on the site at 1158 Nepean Highway, Mornington.

A campaign has been organised to get a feel of what local residents of Mornington feel about the
Kaufland development. Only a small population that have been directly spoken to say they do not
have a problem with this proposal. Only after speaking with many of these people do they realise
the true picture of this proposal. Many changing their approach and supporting the campaign
opposing the development in Mornington.

Residents who reside in the area who will be directly impacted by this proposed development are
asking “how can we stop this ?“

Everyone is saying that this is a done deal; that the contract has been signed between Bata Shoe
Company and Kaufland and that the waiting game for the Minister to approve the development is
frustrating the Kaufland people who want what they want and do not and will not listen to what the
residents of Mornington and the wider Mornington Peninsula want and need.

We did not ask for this development; We do not want this development and we do not need this
development.

People are saying “we do not need another supermarket!” People are happy with the shopping
available as it stands in Mornington and enjoy their experience which is a more personalised one.

Janet Street                                           Kaufland Advisory Committee Mornington Site

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Given more time and resources the campaign to attempt to stop this development, ‘Guarding Our
Gateway’, would have had a wider impact and had a greater volume of people voicing their
objections in a more public manner. Many local residents do not have the skills, experience nor
confidence to voice their objection in the way that is currently being asked of them. Most do not
have the time. I have spoken to many people who have a disability and they feel discriminated
against in being given access to the current process.

I have been told that I am not an ‘expert witness’ and as such I believe my concerns and reasons for
objecting to this development will not hold any weight certainly not with The Minister, Mr Richard
Wynne. Many people feel helpless with this situation.

The campaign has had an information table in the Main street of Mornington on Wednesday
mornings from 27 February 2019. Already collecting over 300 signatures objecting to the proposal
by Kaufland. Everyone is saying the same. “We do not want it”! “We will not be shopping at
Kaufland”!

The Kaufland Approach

The approach taken by Kaufland is insulting; bullying and treats Mornington residents, business
people and the Mornington Peninsula Shire Council with disdain. I note that Kaufland employees
have only spoken to Padua College and Mornington Secondary School. When asked the
representative of Kaufland said that they have not offered, as yet, any monetary incentive to the
two schools but added “We will be contributing to the community”. By this I took that they will be
buying off any negative impact the construction phase and the ongoing operation of the business
will have on the area with sponsorship to the schools. They have not taken any consideration into
the impact on residents let alone the business community.

Mornington sits in a unique position as the gateway into the wider Peninsula area. The population
of the Mornington Peninsula increasing considerably during the summer period as people from
Melbourne area come down to their holiday homes. The current population for Mornington in
particular enjoys and prefer the individualised shopping experience of the Main Street shops and
also the boutique / bespoke style creative industries younger entrepreneurs are starting up. These
are the shops, retail outlets and innovative industries and creatives I support. I will not be shopping
at Kaufland.

The proposal by the Schwarz Group is based purely on self interest, greed and what Mr Dieter
Schwarz, CEO and owner of Kaufland and other subsidiary companies of the Schwarz Group, wishes
for his company. Kaufland, and most likely at a later date Lidl company coming in to Australia, have
nothing I want and nothing I wish to buy.

I cannot buy shares in Kaufland. I will not benefit financially with Kaufland hypermarket in
Mornington or from any Kaufland in Australia. There will be no benefit to me.

Mr Dieter Schwarz is touted as among the richest men in Germany with a net worth of around
$22bn. How much money does he need ?

Janet Street                                            Kaufland Advisory Committee Mornington Site

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Employment

I note that Kaufland states they will create more jobs for locals. (As well as information in the news
media a brochure on https//www.urban.com.au/mornington‐peninsula‐developments‐mornington‐
mt‐eliza‐martha‐cove‐sorrento‐rosebud)

There are no details as to the break down of what jobs will be available; rates of pay; the conditions;
the permanency of the employment with Kaufland.

Attached is an article which sets out some of the issues faced by employees of the Schwarz Group
(Lidl and Kaufland companies) in Poland and other parts of eastern Europe.

https://www.theguardian.com/business/2015/jul/02/lidl‐1bn‐public‐development‐funding‐
supermarket‐world‐bank‐eastern‐europe

Will the arrival of Kaufland create ‘new’ jobs or just shift jobs from one business to another. We may
never know as commercially sensitive information is often the excuse for covering up a true picture
of what is happening in the business world.

Waste Management

My concerns are that the shipping over of eastern European products and goods to Australia will
increase the waste issue for Australia. Kaufland wants bigger, wider, taller stores in order to
dominant the retail market. They stock around 60,000 items in their hypermarkets. Increasing the
amount of waste for local councils to deal with will increase the cost to local councils of Kaufland
moving in. I cannot make any assessment of the Kaufland waste management plan as there is no
waste management plan available to view.

Traffic Congestion Increase

Traffic is difficult to manage at present in the Mornington area due to developments ‘springing up’ in
near vicinity of each other without proper future planning and development taken into
consideration. Rodger Smith, Mornington Gardens Holiday Village operator, has spoken out against
the gridlock in Bungower Road. Traffic is at standstill due to drop off at the primary school and
commuters trying to get onto Peninsula Link during peak hour times. Retirement villages built in the
vicinity also add to the problem. Another housing development on Bungower Road is still to be
completed which will further impact on Bungower Road.

Traffic analysis for the proposed Kaufland development has not taken this area of traffic
management into account. The focus has only been on Oakbank Road and Nepean Highway. The
Oakbank Road Nepean Highway intersection is at gridlock also due to commuters travelling to and
from Mornington during peak times of school drop off/pick up and commuters travelling to/from
work. Other submitters to the Kaufland Advisory Committee also highlight the issue of traffic as a
major concern and objection to the approval of the Kaufland development.

See news articles relating to this issue :

http://mpnews.com.au/2018/11/05/super‐store‐could‐destroy‐gateway/

Another traffic management issue not given consideration is that Padua Drive has become a ‘rat run’
as vehicles navigate through this residential area to avoid the Bungower Road/Nepean Highway
intersection making their way to Padua College. This will increase if the Kaufland development goes
ahead as people wanting to ‘shop’ veer their way through the back streets and avoiding traffic lights
and gridlocks along Bungower Road and Nepean Highway.

Janet Street                                           Kaufland Advisory Committee Mornington Site

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Currently, it is difficult to drive through during drop off/pick up times as cars park in Staughton Way,
Oakbank Road and Padua Drive. As well, Padua Kindgarten on the corner of Padua Drive and Exeter
Drive causes traffic congestion. The Bata Shoe company car park currently accommodates family
members waiting during pick up time.

Noise

Currently, building works at Padua College, Mornington have and continue to impact on quiet
enjoyment of home, outside environment and the local area. The proposed development, if
approved, will impact directly on me to a greater extent with regard to increase in noise. There will
be a significant loss of amenity.

Out of Character

The Kaufland proposal is out of character for the Mornington site. The characteristics I oppose with
regard to the proposal include (but are not limited to) :

       Size and shape;
       Streetscape;
       Setback;
       Architectural style;
       Landscaping;
       Height;
       Location of car parking.

If the Kaufland proposal receives government approval it will create a large commercial / retail
precinct along the highway given the existence of Bunnings and the adjacent commercial Peninsula
Homemaker site. It will do nothing to improve the visual aspect of the approach to Mornington
township. The Kaufland proposal will have deleterious impact on the gateway into Mornington.

Lack of knowledge by Mornington Residents

There is a large population of people in the direct area of this proposed development who are still
unaware of the Kaufland proposal.

Many people have voiced their opposition to this development. Only after hearing from the
campaign and reading the material written (see attached ‘Guarding Our Gateway’ flyer) becoming
aware of the absurdity of this proposal. Some comments made to me directly either face to face or
by email or telephone include :

       “If I had known about this earlier I would have written in!”;
       “What can I do to stop this ?”
       “What is the Shire doing about this ?”
       “We don’t want this in Mornington ?”
       “We have enough supermarkets here ?”
       “I don’t want this to the entrance into Mornington !”
       “What is the State Government getting out of this ?”

An information table in the Main Street of Mornington collected well over 300 signatures against
this development at the time of writing this submission. People are unaware of who Kaufland is and
want to know more. The vast majority of people passing the information table stated they do not
want this development. The outstanding issues that people object to this development include :

Janet Street                                            Kaufland Advisory Committee Mornington Site

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       That the Schwarz Group has approached the State Government to approve their proposal
        rather than allowing Local Government planning process to deal with the application.
       All profits will go back to Germany.
       That the Schwarz family, in particular Mr Dieter Schwarz, has never been to Australia and
        has no relationship with us.
       The reason for Kaufland coming to Australia is based on greed – to make money.
       There is no community benefit; no real employment growth if this development goes ahead.
        No financial benefit for Australia.
       What tax benefits is the Schwarz Group receiving for ‘setting up’ in Australia ?

Recommendation

       I recommend that the Kaufland Advisory Committee reject the Kaufland Australia Pty Ltd
        proposal for the site at 1158 Nepean Highway, Mornington.
       I recommend that Bata Shoe Company Australia Pty Limited open up the sale of this land to
        others for consideration of purchase.
       I propose that affordable housing be considered to be built on the site at 1158 Nepean
        Highway, Mornington.

Bata Shoe Company has enjoyed the support of the local community and has not had a tarnish on
their reputation to date. Their deal with Kaufland has brought the business into criticism from
Mornington residents who have stated that they will no longer shop at Bata Shoes.

I believe other submitters who oppose Kaufland development on the site at 1158 Nepean Highway,
Mornington will make other recommendations / suggestions for, what they believe, to be more
appropriate use of the land.

                                    We did not ask for this !
                                      We don’t need this !
                                      We don’t want this !

Janet Street                                         Kaufland Advisory Committee Mornington Site

GUARDING OUR GATEWAY
is a community activist group set up in protest against the proposal by Kaufland to build a ‘mega store’ or ‘hypermarket’
(hypermart) on the Bata Shoes site at 1158 Nepean Highway, Mornington 3931.

The Kaufland proposal for Mornington includes a 430 vehicle car park and at least a 4,000 square metre hypermart
including the selling of liquor. The proposal also has a 20 metre sign which will be the first thing people will see when driving
into Mornington, the gateway to the Mornington Peninsula.

Victorian State Government Planning Minister, Minister Richard Wynne was approached by the Schwarz Gruppe, a private
family-owned German retail group to develop the ‘hyermarts’ in Victoria (and other parts of Australia).

The Planning Minister, Mr Richard Wynne, has overridden the planning processes already in place in Victoria taking this out
of the hands of local government planning departments. He set up a three person ‘advisory panel’ who will take submissions
and hold public hearings for those wanting to speak either for or against the proposals for Kaufland on six sites in the wider
Melbourne area of Victoria.

Who is Kaufland ?
The Schwarz Gruppe is the fourth-largest retailer in the world by revenue. They are the third largest family owned German
company in Germany. First is Volkswagen AG with BMW Group second.
(https://die-deutsche-wirtschaft.de/biggest-german-familiy-owned-enterprises/)

They currently operate in 26 countries around the world. They own and operate the Lidl and Kaufland brands. Both brand
names have been registered in Australia by the Schwarz Gruppe.

They are moving into Australia to grasp the retail dollar in grocery and food from other current operators which include Coles
(Australian owned); Woolworths (Australian owned); IGA (Australian owned) and Aldi (German owned). They will also give
Costco, Kmart and Target ‘a run for their money’.

Initially, Kaufland is setting up in Adelaide, South Australia. The Schwarz Gruppe has acquired the prominent former
Le Cornu site in Forestville for $25million ” in order to build the first hypermarket in
Australia. (www.insideretail.com.au/news/duopolys-grip-under-threat-201710)

The German retailer plans to build a 20,000 square metre store on the site much bigger than any Costco store. The Adelaide
store is a test site for the Schwarz Gruppe to see how the (Australian) market reacts to their Kaufland business model.

You cannot buy shares in Kaufland as it is a family owned company. All profits will go back to Germany.

Will Kaufland be cheaper ?
The answer is no. Discount stores are based on having fewer workers in order to cut their costs. It is unknown at this stage
what percentage of goods sold in their stores will be Australian products and food items.

Costco has a membership fee for anyone wanting to shop in their warehouse style stores. Kaufland state they will not have
a membership fee.

Why we oppose the Kaufland proposal to locate their store on the Bata Shoes site.

1. Environmental Reasons
Traffic
Currently, traffic is heavy entering into Oakbank Road, Mornington from Nepean Highway during the drop off and pick up
times for school children attending Padua College, Mornington. The Bata Shoes carpark is taken up by family members
waiting to pick up their children. Oakbank Road is a oneway road. This traffic congestion will increase dramatically if / when
the Kaufland proposal goes ahead during the building stages. It will also increase and be maintained during the opening
of the store. There will be two entrances into Kaufland from Oakbank Road. There will also be an entrance from Nepean
Highway into Kaufland and an exit onto Nepean Highway. Peak hour traffic with commuters travelling into Mornington is at
a standstill now. This, also, will dramatically increase when the ‘development’ site is being constructed and when the store is
up and running.

Noise
Currently, the noise levels around this area are very quiet and peaceful. Noise from construction will increase dramatically
during construction stages and once the Kaufland store is open. As well, noise from large delivery vehicles during the early
hours of the morning will disrupt the quiet living environment of the residents whose home abuts the site.

Green Wedge
The Green Wedge is constantly under threat. Already at 75 Oakbank Road a car park has been built for use by staff of a
local school. The land on the corner of Oakbank Road and Nepean Highway is up for sale with the ‘Wedge’ under threat of
having developers muscle in. A local school put up a fight to purchase that land wanting to build on the site.

2. ECONOMIC

Small businesses struggle now for survival. The introduction into the market of a ‘big player’ will see aggressive marketing
strategies, buying power and their proposed large presence at the ‘gateway’ into Mornington grab business away from the
Main Street shops and the Homemaker centre. Mount Eliza Village is at risk also. There is no large advertising on Nepean
Highway for Mount Eliza Village.

Boutique shops will be phased out if their customer numbers don’t increase. Any loss of sales will see vacant shops up for
lease due to a honey moon phase of people shopping at the ‘new kid on the block’.

Kaufland have the resources to engage a large legal team to fight for want they want. Already their 56 page economic
analysis for why they should move in baffles anyone who doesn’t have an economics degree. Has any Kaufland
representative spoken to a local in Mornington ?

3. LACK OF DUE PROCESS

The fact that the State Government were approached overriding the local government planning process begs disbelief.
No other retailer has done this when setting up shop in Mornington so why should a new arrival be allowed bigger space;
bigger signs; bigger profits. No discussion has occurred with the residents living in the local surrounds of this proposal.
The Planning Minister Richard Wynne has set up a panel and does not have to release the final report from his self
appointed ‘advisory panel’. We may never know what the panel has reported back to the Minister.

Kaufland has an unfair advantage over all others.

Hearing dates occurring in Mornington on 13 and 14 March 2019 and 21 March 2019 at The Pavillion, Mornington Park.

 Join Guarding Our Gateway to get involved in opposing this inappropriate development on the gateway entry into
                 the Mornington Peninsula which sits on the Green Wedge area of Mornington.

          We will have information table weekly at the Mornington Main Street market day on Wednesdays.
                         Facebook page: https://www.facebook.com/guarding.ourgateway.9
                                      eMail: GuardOurGateway@outlook.com

       Do you really want to see a German family-owned business as the face of The Mornington Peninsula ?

                            Read more regarding the Advisory Panel process and Hearing dates:
                           https://engage.vic.gov.au/kaufland-advisory-committee/nepean-highway