Lidl Invested Half A Billion Euro In Irish Food In 2015: Report
Lidl reportedly invested over half a billion euro in Irish food in 2015, and has contributed €1.5 billion to the country’s GDP since opening its first stores in Ireland in 2000, according to a report by DKM Economic Consultants.
The discount retailer’s purchases from Irish suppliers have grown year-on-year, and in 2015, a total of €539 million was sourced from Irish food suppliers. Of this figure, €152 million worth of Irish-sourced goods were purchased by Lidl for sale in its store network overseas, which accounted for 1.4% of total Irish food and drinks exports in 2015.
JP Scally, Managing Director, Lidl in Ireland commented, “We are delighted that our relationship with Irish suppliers continues to grow, not only in purchasing produce worth €387 million for sale in our Irish stores, but also in supporting some of our 180 large and small Irish suppliers open up new export markets.”
The report, The Economic Impacts of Lidl’s Operations in the Republic of Ireland, adds that the German discounter has invested a total of €1.4 billion in Ireland to date, and has earmarked a further €110 million in capital spending for 2016.
In its analysis, DKM highlighted that Lidl’s programme of capital investment continued while the country was in severe recession, and it argues that this helped maintain the construction sector and employment during an extremely difficult period for the Irish economy.
The consultancy firm also estimates that the Exchequer has gained revenues of €413 million from Lidl’s capital investment programme since 2000, in addition to revenues derived from its ongoing operations in Ireland
According to the report, Lidl employs 4,000 staff directly in Ireland, as well as supporting the employment of another 5,700 in supplier and the wider economy. DKM also found that jobs offered by Lidl are of "a high quality, providing sector leading rates, supported by training and education and opportunities for career progression.:
John Lawlor, Director of DKM Economic Consultants, commented on the report, "Lidl has been a substantial economic presence in Ireland since its arrival in 2000 and its contribution has been significant in three key areas; namely capital investment in new stores and distribution centres; purchasing goods from Irish suppliers both for sale in Ireland and Lidl stores overseas; and as a major employer paying sector leading rates."
He added that, "It is also worthwhile to note that, unlike other forms of FDI, Lidl’s investment is spread widely around the country, while the company’s focus on providing a real value proposition has also helped keep costs down, contributing to improved competitiveness."
© 2016 - Checkout Magazine by Jenny Whelan.