Aldi report says retailer has invested €1.2bn in Irish economy

Retail chain spent €700 million with Irish companies last year according to report assessing company’s economic impact

According to Aldi managing director Giles Hurley, the chain works with over 175 businesses in Ireland and spent over €700 million with Irish producers.

According to Aldi managing director Giles Hurley, the chain works with over 175 businesses in Ireland and spent over €700 million with Irish producers.

 

German retailer Aldi has invested more than €1.2 billion in capital expenditure in Ireland since it opened its first stores here in 1999.

According to a report assessing Aldi’s economic impact in Ireland, last year the retailer contributed to the generation of more than €1 billion to Ireland’s gross domestic product (GDP) through job creation, spending with Irish-based businesses, tax contributions and capital investment. The report predicts that as Aldi plans to expand further, this figure is expected to rise to €1.2 billion annually by 2020.

Investment

The report, carried out by economic consultancy Cebr, outlines Aldi’s expansion in Ireland. The retailer first opened two stores in 1999 in Dublin and Cork and currently has a presence in all 26 counties with a total 129 stores and two regional distribution centres in Naas and Mitchelstown. Much of Aldi’s investment was made between 2009-2013, during the recession, the report notes.

Since 2005, Aldi’s average capital investment has been €75 million annually which peaked at €114 million in 2013. This included spending on site acquisition, construction, machinery, equipment and vehicles.

The retailer currently employs almost 3,200 people, up from 700 in 2005. According to the report, last year Aldi’s total employment ‘footprint’ through direct and indirect jobs that stem from the retailer’s relationship with suppliers was 12,150 which is set to grow to at least 13,750 in 2020.

Products

According to Aldi managing director Giles Hurley, the chain works with over 175 businesses in Ireland and spent over €700 million with Irish producers, manufacturers and suppliers last year.

Over half of the retailer’s sales in Ireland come from products sourced from domestic suppliers. The products sourced in Ireland include fresh meat and poultry, dairy products, fruit and vegetables and beers and soft drinks.

“The €1.2 billion investment figure reflects both an upfront commitment but also the reinvestment of our profits here in Ireland, creating employment, bringing business to local suppliers and of course bringing high quality groceries to families at low prices,” said Mr Hurley in a statement.

Last year Aldi announced that it plans to open new stores and create 400 jobs over three years.