Sunday 25th Sep 2016 - Logistics Manager

Aldi leads the race for warehouse space

German discount retailer Aldi is leading the race for the most warehouse space planned in the UK this year according to data from construction data provider Barbour ABI.

23577According to the latest report, planning applications for proposed floorspace for UK supermarket warehousing is at 890,789 sq ft for 2015 so far, of which 645,835 sq ft has been proposed by Aldi, which is constructing a major distribution centre in Cardiff that is due to open in 2017. This reflects the activity from 2014 where 94 per cent of proposed warehousing floorspace came from Aldi.
Concerning the ‘big four’ supermarket retailers, Asda was the only one to seek any type of warehousing planning permission in 2014 with 115,120 sq ft of floorspace, whereas Tesco have not solicited any planning permission for warehousing space over the last two years.

Commenting on the figures, Michael Dall, lead economist at Barbour ABI, said: “With Aldi planning to spend a total of £109 million in 2015 on new build stores, they have also planned over 2.5 million sq ft of warehouse space across the last two and a half years to meet future demand.”

“The latest figures include a £25 million distribution centre in Cardiff which began construction earlier this month. Aldi has put ambitious growth plans into place to successfully build on their solid foundation as they continue to do battle with the ‘big four’.”