The new store in Gross Gerau, near Frankfurt, includes an electronics department, George clothing range, baby centre, optical centre and pharmacy. Another store will open in Berlin later in the year.
The new 27,000 sq m warehouse will open near Bingen next year, supplying ambient groceries and non food to stores in southern Germany.
Coming after store closures in Ingolstadt and Wilhelmshaven, and industrial action over the summer, the move highlights the US giant's determination to turn things round in Germany.
MD Kay Hafner claimed: "This will enable us to markedly reduce the costs for the entire supply chain and enhance the efficiency of deliveries."
The company has dismissed press speculation that more stores will be shut saying no closures are planned.