Lidl To Open Logistics Centre in Madrid

Lidl To Open Logistics Centre in Madrid

Lidl To Open Logistics Centre in Madrid

There was some welcome good news for the Madrid region last month, both on the employment front and in terms of foreign investor interest!

German discount supermarket chain Lidl said it will earmark 70 million euros for a new logistics centre in Alcalá de Henares, on the outskirts of the Spanish capital.

This will be Lidl’s largest logistics platform in Europe and the construction work and commissioning of this distribution centre will create 100 jobs. The centre is due to be fully operational by the summer of 2016, servicing more than 150 Lidl stores in the vicinity.

BETTING ON AN UPTICK IN SPANISH CONSUMPTION

Lidl is the world’s second largest discount chain, just behind German rival Aldi. The company’s owners, the Schwarz Group, are forecast to become western Europe’s biggest grocery retailer by 2018 as discounters become mainstream across the continent.

Lidl first entered the Spanish market in 1994 and has 530 stores throughout the country. It invested around 180 million euros in Spain last year to open new stores, improve existing ones and build its ninth warehouse. The German multinational’s latest project was first announced more than three years ago when Spain was still struggling to weather a deep economic downturn. The new centre will be located on a plot of land previously occupied by an Electrolux factory which closed its doors in 2011, laying off 400 workers. Lidl has committed to giving priority to former Electrolux employees wishing to work at the logistics centre. So, this is good news for the jobless numbers in the Madrid community, which posted one the biggest increases in unemployment in the last quarter of 2014.

Efficient and cost effective operations are the backbone of any successful discount retailer, driven by the ongoing objectives of carrying out a fast inventory turnaround and frequent deliveries. Lidl’s Alcala de Henares distribution centre will enable the company to step up its operations in Spain and take advantage of the expected uptick in domestic demand and consumption as the economy continues to expand.

FOREIGN INVESTORS KEEP COMING

Over the last 18 months, Spain has been rekindling overseas investor interest, ranging from leading European car manufacturers like Volkswagen to Japanese electronics and IT giant Fujitsu. A decline in labour costs and cuts in corporate tax, as well as government incentives for companies which come to Spain and create jobs, currently make Spain an attractive investment hotspot for international businesses.

For information on investing in Spain, contact corporate law firm Argali Abogados.

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