Lidl opens £300m super warehouse in fight against UK's biggest grocers

1.2 million square foot facility in Bedfordshire will create up to 1,500 jobs

Lidl has opened its largest warehouse in the world and is stepping up the fight with Britain's biggest grocers.

The German discounter said the giant new warehouse in Luton, Bedfordshire, which cost £300 million to build and three times the size of its existing large warehouses, was proof of its ambition to expand its presence across the UK.

Lidl said the 1.2 million square foot facility will create up to 1,500 jobs and be able to supply food to 150 stores. This is part of a push to open more stores across the country.

The supermarket now has over 960 stores in England, Scotland and Wales, with 50 new stores opening last year and 19 openings earlier this year. year. By the end of 2025, it is planned to open about 1100 stores.

The warehouse was designed to supply these stores, not online shopping. Lidl has so far avoided entering the online grocery marketplace, instead stating that brick-and-mortar stores themselves represent a «significant growth opportunity».

The warehouse was designed for store supply, not online delivery. Photo: Stuart Attwood

Lidl GB director of development Richard Taylor said the decision to open the UK's largest warehouse «speaks for itself not only in terms of how we need to meet growing customer demand, but also in terms of our ambition to increase that demand into the future. ”.

He added: “Demand for Lidl has never been higher and we see more people walking through our doors to save on every store.”

Chancellor Jeremy Hunt called the investment a sign of confidence in the UK, suggesting that more companies will follow Lidl's lead and put money into UK operations. Up to this point, high inflation has kept some companies from investing heavily.

However, Lidl continues to increase spending in the UK amid a surge in consumer demand. The company recently opened four more warehouses in Doncaster, Peterborough, Motherwell and Belvedere.

Takeover of a German supermarket in 1907

The emphasis on distribution centers came after it was revealed earlier this year that the German discounter was looking to strengthen its supply chain following «some problems in [its] distribution centers» last summer.

The challenges are meant the company was forced to slow down store reopening plans to divert attention to its warehouses. However, the company remains hopeful of hitting its store target by 2025.

The German discounter is investing in its UK business in an attempt to seize the opportunity to attract more customers through lower prices at cost of sales . a living crisis.

Over the past year, Lidl has rapidly increased its share of the British grocery market. The latest industry data suggests it has taken a step forward to overtake Morrisons to become the UK's fifth largest grocery store. Lidl accounts for 7.7% of the market compared to 7% last year, while Morrisons now has a market share of 8.7% compared to 9.3% last year.

And Lidl, and Aldi attracted 800,000 additional customers to their stores. according to the latest data, from August last year.