Competition inside the Irish grocery trade is set to turn out to be a lot more intense following the disclosure by German discounter Lidl that it is looking for web sites for more than 60 additional stores on both sides in the Border.
The planned expansion is believed to be the biggest by any in the principal grocery multiples and coincides with indicators of a continuing recovery in customer spending inside the Republic.
Lidl is already among the largest retailers in Ireland with 143 shops as well as a additional 38 in Northern Ireland. The other German discount chain Aldi has 115 shops in the Republic but will not trade in Northern Ireland
Lidl has appointed CBRE’s Dublin and Belfast offices to discover key web sites in cities and towns to facilitate the expansion. Following opening its very first store right here in 2000, it expanded rapidly and "experienced unparalleled growth throughout their lifetime in Ireland," based on the company.
As a part of the continued expansion strategy it says it really is "looking to open extra 60-plus retailers on higher profile web sites with excellent visibility and accessibility."
The best website will probably be two acres in size though smaller plots of about a single acre will likely be considered in high density urban areas. There is certainly also a preference for freehold properties to accommodate shops ranging in size from 1,800 sq m to 2,400 sq m (19, 375 sq ft/25,833 sq ft).
Florence Stanley, head of retail at CBRE Dublin, mentioned that in addition to mounting a countrywide look for suitable websites, they will be contacting neighborhood estate agents to find the most effective company areas.
"It might take a while to fulfil our commitment but if we manage to line up 60 websites inside 3 years our client would almost certainly be happy."
Whilst most of the current Lidl properties have substantial parking facilities, the organization has also been in a position to avail of smaller sized, well-located sites by placing the stores on stilts and using the space underneath the creating for parking.
A single such store is positioned
on the 1.14-acre former Sunday Planet website in Terenure which not too long ago opened for business.
That site was bought by a residential development company during the property boom for €18.3 million and was acquired right after the crash by Lidl for greater than €4 million.
Not excellent news
Tara Buckley, director common of the Retail Grocery Dairy and Allied Trades Association, mentioned 60 discount supermarkets was not excellent news for Irish towns and villages.
A full report
by economist Jim Power had shown that a euro spent in a locally owned shop was worth 3 occasions more than a single spent inside a British or German chain. At the finish from the day their earnings go back to Germany or the UK.
Lidl’s share of the discount market inside the North has risen significantly over the years although surprisingly the organization has not been challenged in that marketplace by Aldi. That organization lately confirmed that its planned £600 million expansion within the UK - it is to open another 550 outlets - won't contain Northern Ireland.
Meanwhile, Tesco continues to be mulling over the lengthy delayed megastore planned for Liffey Valley Purchasing Centre in west Dublin. It has denied it really is to be abandoned just like 49 other supermarket projects inside the UK.
Planning permission for the store was granted by An Bord Plean?la in June 2016 and, according to an official spokesperson, the business is "working by means of planning compliance with all the local authority and as such a commencement date for the improvement has not yet been finalised".