Features

A Better Tomorrow with Lidl

25 Oct , 2023  

With plans to open another 50 stores across Ireland, these are very exciting times for Lidl which recently received the coveted Green Retailer Award and opened its newly extended Mullingar regional distribution centre following an €80 million investment.

The first Lidl Ireland stores opened in 2000 and over two decades later, the retail giant has almost 180 stores, three regional distribution centres and employs more than 6,000 people in the Republic of Ireland. Lidl takes great pride in providing its customers with the highest quality products at the lowest prices, and works with a network of more than 260 Irish suppliers from the communities it operates in to keep its shelves stocked with nutritious, fresh produce.

Lidl Ireland and Northern Ireland was delighted to receive the Green Retailer Award at the 2023 Green Awards which took place at The Clayton Hotel Burlington Road, Dublin on February 21 last. Now in their 16th year, The Green Awards recognise the extraordinary contribution and commitment that companies make towards growing a green future in Irish business today.

The Green Retailer Award comes on the back of Lidl Ireland’s commitment to become a carbon neutral business by 2025. Two years ago, the discounter launched several initiatives as part of that commitment. It developed a dedicated Supplier Engagement Programme – the first of its kind in Irish retail – to focus on collaboration with key suppliers to develop CSP and sustainability projects to improve the suppliers’ environmental impact and, in turn, help them to sustainable growth in the future.

It is also helping customers to lower their carbon impact by installing EV charge points at its stores. Overall, the chain aims to reduce its own operational emissions by 46% by 2030 and has been working with the Carbon Trust to collaborate on measuring its carbon footprint and to model in-depth reduction pathways aligned to the Science Based Target Initiative guidelines.

The Supplier Engagement Programme, which is running for five years, aims to develop long-term plans with suppliers to address not only reducing carbon emissions, but also cutting the amount of packaging, circularity and other areas.

Lidl Ireland’s commitment to sustainability is evident in its newly extended Mullingar regional distribution centre which features a football pitch-sized rooftop solar panel array consisting of close to 3,000 panels which will help to reduce the centre’s carbon output by 220 tonnes per year.

The facility, which is one of the Lidl Group’s largest worldwide and one of the largest distribution centres on the island of Ireland, will create an additional 100 permanent jobs. Speaking at the opening, Minister of State for European Affairs and Defence Peter Burke said it was “a momentous occasion” for Mullingar and the wider food industry.

“With an investment of €80 million, this facility will not only create 100 new jobs, but also make a significant contribution towards a more sustainable future by harnessing solar power to meet a substantial portion of its energy requirements,” the Minister added.

“I am honoured to be here today to officially open the building and I commend Lidl for their commitment to our local community, and for their support of Ireland’s green agenda. I am confident that this investment will have a positive impact on the region and I look forward to witnessing its continued growth and success.”

Lidl Ireland chief development officer Alan Barry said the centre reflected the company’s ongoing investment in the Irish food sector.

“This investment supports Lidl’s growing footprint of stores nationwide and is in line with our ongoing €550 million three-year expansion plan which we first announced in 2021,” he commented.

“As part of this plan, we’re also on track to deliver several new stores this year with Clonmel, Kilkenny and Ballincollig opening earlier this year, and Limerick and Bettystown set to open in the next few months.”

The Mullingar facility originally opened in 2008 to service stores in north Dublin, the midlands and the north-west, and 1,000 construction jobs were created as it was extended by 15,000 sq. m. to 62,000 sq. m. This expansion will enable Lidl to increase capacity by a third, and the facility will now serve all 177 Lidl branches nationwide, operating 24 hours a day with capacity for 42,000 pallets.

Speaking earlier this year as the company announced a €1 billion investment into the Irish agri-food industry for 2022, Lidl Ireland CEO JP Scally said he “sees room” for another 50 stores across Ireland.

Of that €1 billion, €682 million stayed within Ireland for sale to Irish consumers and €318 million was exported to many countries, including Britain, Germany, Cyprus, Italy, Denmark, Greece, Portugal, Slovenia, Poland and the US.

“We certainly have more expansion to do,” Mr Scally said.

“Just last year, we announced a further €550 million investment in our store and logistics network over a period of three years. We do see room for roughly another 50 stores across the island. We have a number in-build at the moment. We have store openings coming up in Limerick and Bettystown later this year. We’ve many more that are in the planning phase as well.

“So hopefully over the next number of years, we will continue with an expansion rate bringing us to about 50 additional stores.”

First published in Grocery & Retail Ireland magazine Vol 2 No 1, Summer 2023