Competition in the Irish grocery trade is set to turn out to be much more intense following the disclosure by German discounter Lidl that it's searching for sites for greater than 60 further shops on each sides from the Border.
The planned expansion is thought to be the biggest by any from the primary grocery multiples and coincides with signs of a continuing recovery in consumer spending in the Republic.
Lidl is currently among the biggest retailers in Ireland with 143 stores and a additional 38 in Northern Ireland. The other German discount chain Aldi has 115 shops within the Republic but does not trade in Northern Ireland.
Lidl has appointed CBRE’s Dublin and Belfast offices to locate important web sites in cities and towns to facilitate the expansion. Right after opening its first shop 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 method it says it's "looking to open further 60-plus stores on high profile web sites with excellent visibility and accessibility."
The ideal website will be two acres in size although smaller sized plots of about one acre will be regarded as in higher density urban areas. There is certainly also a preference for freehold properties to accommodate stores 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 search for appropriate web sites, they will be contacting local estate agents to find the most effective enterprise locations.
"It might take a whilst to fulfil our commitment but if we manage to line up 60 websites within 3 years our client would most likely be satisfied."
Whilst most of the current Lidl properties have substantial parking facilities, the business has also been capable to avail of smaller, well-located sites by placing the retailers on stilts and utilizing the space underneath the creating for parking.
1 such store is positioned around the 1.14-acre former Sunday Globe site in Terenure which lately opened http://scritter.guldhammer.info/YoungDurant for company.
That site was bought by a residential improvement company throughout 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 from the Retail Grocery Dairy and Allied Trades Association, mentioned 60 discount supermarkets was not good 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 3 occasions more than one spent in a British or German chain. In the end in the day their profits go back to Germany or the UK.
Lidl’s share in the discount marketplace in the North has risen substantially over the years though surprisingly the business has not been challenged in that marketplace by Aldi. That organization not too long ago confirmed that its planned £600 million expansion inside the UK - it's to open another 550 outlets - won't contain Northern Ireland.
Meanwhile, Tesco is still mulling more than the extended delayed megastore planned for Liffey Valley Purchasing Centre in west Dublin. It has denied it is to become 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 via organizing compliance using the local authority and as such a commencement date for the development has not however been finalised".