Lidl has published a long list of desired locations for new stores, despite scaling back its opening plans this year.
The list includes hundreds of towns and cities spanning the length and breadth of the country, with about 250 sites desired in London alone.
Lidl said it represented a list of potential sites from which a small number would eventually be developed and opened as stores. It added they were desirable locations to Lidl but not new store plans or openings.
The discounter has opened 15 new stores since the start of the year and projects it will open 10 more throughout the course of 2023 as it focuses investment on warehouse expansion. It has previously opened about 50 new stores a year in pursuit of having 1,100 by the end of 2025.
The slowdown led to a number of redundancies in Lidl’s construction team earlier this year, as revealed by The Grocer.
Lidl nevertheless also reiterated its finder’s fee for suitable sites in its announcement this morning, of either 1.5% of the total freehold or 10% of the first year’s rent for leaseholds. The fee is offered to anyone, including members of the public, who successfully identifies sites for the potential development of new Lidl stores.
It said its largest ever warehouse would open in August in Luton, creating more than 1,500 jobs and serving over 150 stores.
Lidl has also recently submitted a planning application for new regional distribution centre on a 38-acre site in Gildersome, Leeds, while expansion work on its warehouses in Belvedere and Bridgend is due to complete later this year
“Our store expansion has been and continues to be unparalleled,” said Lidl GB chief development officer Richard Taylor.
“In the last three months alone, we’ve opened 15 new stores – more than any other retailer, and in 2022 we welcomed customers through the doors of over 50 new stores.
“But we won’t be stopping there. Our vision is to have over 1,100 stores in the future, but really there’s no ceiling on our ambition or growth potential. What’s important is that we take a strategic and sustainable approach to getting there.”
Lidl GB CEO Ryan McDonnell said: “The last few years have been challenging for everyone, but we’ve made it clear that we’re more committed than ever to ensuring that every single household has access to a Lidl store. That’s why our focus is firmly on the future as we continue to grow and invest in our infrastructure, while keeping a lookout for more sites and locations across the country.
“We had over 1.4 million new shoppers coming to us from our competitors over the course of last year. This alone shows the potential for continued growth as customers refuse to pay a premium for their shopping, when they know they can get the same, if not better, quality at Lidl. As we progress further into 2023, we know that more shoppers will make the switch, and whichever of our stores they choose, they know they’re getting the best value.”
Aldi has also made a number of recent announcements of its expansion ambitions, including one saying it was “stepping up its search for new sites across the country as it aims to continue rolling out new stores at pace”. Aldi’s store number has been “over 990” since the start of the year, with its 1000th expected to come in quarter three. It projects it will open or relocate about 40 stores in the course of 2023.
Lidl currently has about 960 stores.
Lidl’s site requirements
Nationally:
- Prominent locations with easy access and strong pedestrian or traffic flow
- Freehold, leasehold or long leasehold opportunities
- Unit sizes between 18,000 and 26,500 sq ft and 100-plus dedicated car parking spaces
- 1.5-plus acres for standalone stores or up to 4 acres for mixed-use schemes
- Town centre or edge of centre and retail parks
In London:
- Approximately 0.8-plus acres for standalone stores or up to four acres for mixed-use schemes
- With or without car parking and in close proximity to key public transport links
- As well as standalone stores Lidl is looking for opportunities in:
- Shopping centres
- High streets
- Mixed-use
- Retail parks
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