Pictured at the launch of a report undertaken by DKM Economic Consultants The Economic Impacts of Lidl’s Operations in the Republic of Ireland were: JP Scally, Managing Director, Lidl; John Lawlor, Director of DKM Economic Consultants; and Shaun McKevitt, Terra Ltd

 

Over € ½ billion Irish food and drink sourced by Lidl in 2015

DKM: “Lidl’s investment in Ireland contributes €1.5bn to GDP since 2000”

11,000 direct and indirect jobs supported by Lidl’s ongoing operations and store investment programme

 

15th April, 2016: A report undertaken by DKM Economic Consultants – The Economic Impacts of Lidl’s Operations in the Republic of Ireland – has established that Lidl’s capital investment programme in Ireland to date, combined with its ongoing operations has and continues to be a major contributor to the Irish economy.

Impact of capital investment to date

Since establishing its first seven Irish stores in 2000, which have grown to 147 today, Lidl has invested €1.4 billion in the Republic of Ireland with an additional €110 million capital spend earmarked for 2016. This capital investment in turn has contributed €1.5bn to Irish GDP since 2000.

Almost 21,000 years of employment have been generated in the Irish economy through Lidl’s capital programme since 2000. Another method of calculating the impact of Lidl’s capital investment in Ireland over the past 16 years is that over 1,200 workers have been kept permanently employed as a result of its store and distribution centre capital development programme. In its analysis, DKM highlighted that Lidl’s programme of capital investment continued while the country was in severe recession and helped maintain the construction sector and employment during an extremely difficult period for the Irish economy.

DKM estimates that the Exchequer has gained revenues of €413 million from Lidl’s capital investment programme in the Irish economy since 2000 in addition to revenues derived from its ongoing operations. DKM also referenced that, unlike other forms of FDI, Lidl’s activities are widely spread around the country, much of it in smaller towns where alternative employment opportunities can be limited, especially in recent years.

Ongoing operations

Lidl employs 4,000 staff directly in Ireland and supports the employment of an additional 5,700 in suppliers and the wider economy through its ongoing operations in Ireland and overseas. In the context of employment, DKM 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. When employment generated from its capital investment programme is added, total direct and indirect employment supports 11,000 jobs in Ireland.

Purchases from Irish suppliers have grown year-on-year and in 2015 a total of €539 million was sourced from 180 Irish food suppliers. Of this €152 million worth of Irish sourced goods was purchased by Lidl for sale in its store network overseas which accounted for 1.4% of total Irish food and drinks exports in 2015. This export activity added €97 million to Ireland’s GDP according to DKM.

In addition to purchases from Irish suppliers, Lidl spent a further €98 million on Irish goods and services as inputs to its operations in 2015.

Lidl’s current annual contribution to Irish GDP from its ongoing operations is €685 million and its contribution to tax revenue now exceeds €300 million annually, (excluding Commercial Rates). When combined with the Exchequer revenues from sales of Irish goods to Lidl internationally, the additional contribution of €23 million brought the total Exchequer tax take to €350 million in 2015.

As part of its analysis, DKM also highlighted Lidl’s active citizenship programme of support and sponsorship which assists good causes and communities around Ireland by referencing its €1.2 million contribution to Barretstown, €1.5 million investment in Ladies Gaelic Football and other initiatives such as Crosscare in Dublin and Big Food Initiative in Cork which has provided meals for over 135,000 people in the past 6 months.

John Lawlor, Director of DKM Economic Consultants, said: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. Lidl’s investment has grown year-on-year and its ongoing investment during the recession helped maintain the construction sector and employment during a difficult period for Ireland economically. 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.”

JP Scally, Managing Director, Lidl in Ireland added:Over the past 16 years Lidl has made a significant investment in Ireland and by working closely with local suppliers and staff, who have been key to our success, we have built a business that serves over 1.5 million customers each week and through this supports up to 11,000 jobs in communities across the country. 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 where over €150 million of Irish produce is supplied to Lidl stores in 18 countries across Europe. Lidl in Ireland is proud of the fact that sales of Irish sourced goods in Lidl’s European stores accounts for 1.4% of all Irish food and drink exports and we look forward to growing this in the years to come.”

ENDS

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