Lidl opens huge new warehouse to continue growth in London
Updated : 13:09
Lidl is opening its largest UK warehouse in Luton as part of the German discounter's £1.45bn investment in growth to keep up its assault on the Big Four supermarkets.
The Luton warehouse, which will occupy 58 acres off the M1 and generate 1,000 jobs, will be more than double the size of any other of the group's UK distribution centres so far.
This warehouse follows the opening of three other new warehouses in the past 18 months and there are plans to open five more.
UK industry data out on Tuesday showed Lidl and fellow German discounter Aldi were both neck-and-neck in leading the supermarket sector growth over the Christmas period. In the 12 weeks to 31 December, Lidl and Aldi both grew sales 16.8%.
Lidl's market share grew to 5%, from the 4.4% a year ago, having long ago overtaken Iceland to be the eighth largest supermarket in Britain. Lidl has been closing in on seventh placed Waitrose, which has a 5.2% share, while Co-op in sixth has 5.8% and Aldi in fifth jumped up to 6.8% from 6.0% a year ago.
Ingo Fischer, Lidl UK Board Director for expansion and development, said: “As more London households choose to shop at Lidl we are committed to the continued investment in our operations and infrastructure to support our growth.
“With five new stores opening in the next two months alone, and further store expansion and development plans in place for the Greater London area across the new financial year and beyond, this new warehouse is vital in supporting our ambitious expansion plans in and around the M25.”
Lidl bought the site from the Houghton Regis Management Company, which is a consortium of Aviva Investors, LIH and the Diocese of St Albans.
Earlier this month, Aldi UK reported grew 15% on the year in December, helping to push its total sales in the UK and Ireland in 2017 to more than £10bn for the first time.
UK CEO Matthew Barnes said he saw "significant capacity for further growth" as there are still more than 400 towns and cities across the UK without an Aldi store where shoppers have expressed an interest in shopping at Aldi.