Competition within the Irish grocery trade is set to grow to be even more intense following the disclosure by German discounter Lidl that it’s looking for sites for greater than 60 extra shops on both sides in the Border.
The planned expansion is thought to become the biggest by any from the principal grocery multiples and coincides with signs of a continuing recovery in customer spending in the Republic.
Lidl is already one of the largest retailers in Ireland with 143 stores as well as a further 38 in Northern Ireland. The other German discount chain Aldi has 115 shops inside the Republic but does not trade in Northern Ireland.
Lidl has appointed CBRE’s Dublin and Belfast offices to find important websites in cities and towns to facilitate the expansion. Following opening its very first retailer here in 2000, it expanded quickly and “experienced unparalleled development throughout their lifetime in Ireland,” based on the company.
As part of the continued expansion strategy it says it’s “looking to open further 60-plus retailers on higher profile web sites with good visibility and accessibility.”
The best site will probably be two acres in size although smaller plots of about 1 acre will probably be considered in higher density urban areas. There is certainly also a preference for freehold properties to accommodate retailers 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, said that along with mounting a countrywide look for suitable websites, they will be contacting local estate agents to find the best business areas.
“It may well take a while to fulfil our commitment but if we handle to line up 60 sites within 3 years our client would probably be happy.”
Whilst the majority of the existing Lidl properties have substantial parking facilities, the business has also been able to avail of smaller, well-located websites by placing the stores on stilts and making use of the space underneath the creating for parking.
1 such shop is positioned around the 1.14-acre former Sunday World web site in Terenure which lately opened for company.
That site was bought by a residential improvement company throughout the home boom for €18.3 million and was acquired following the crash by Lidl for greater than €4 million.
Not excellent news
Tara Buckley, director basic from the Retail Grocery Dairy and Allied Trades Association, mentioned 60 discount supermarkets was not great news for Irish towns and villages.
A report by economist Jim Power had shown that a euro spent in a locally owned shop was worth three times more than 1 spent within a British or German chain. In the finish of the day their earnings go back to Germany or the UK.
Lidl’s share of the discount market in the North has risen substantially more than the years though surprisingly the organization has not been challenged in that market by Aldi. That organization not too long ago confirmed that its planned £600 million expansion within the UK – it is to open yet another 550 outlets – will not include Northern Ireland.
Meanwhile, Tesco continues to be mulling over the long delayed megastore planned for Liffey Valley Purchasing Centre in west Dublin. It has denied it’s to be abandoned just like 49 other supermarket projects within the UK.
Preparing permission for the shop was granted by An Bord Plean?la in June 2016 and, in accordance with an official spokesperson, simply click the following page company is “working via planning compliance with all the local authority and as such a commencement date for the improvement has not however been finalised”.