Lidl, the large European limited assortment retailer which earlier this year said it would enter the U.S. market by 2018, broke ground October 27 for a new regional headquarters and distribution center in Spotsylvania County, VA. The facility is expected to create 200 jobs in the state and open no later than 2018.
“We are tremendously excited to break ground on this facility in Spotsylvania County,” said Brendan Proctor, president and CEO of Lidl US. “We chose Spotsylvania not just for its central location, but also for its talented workforce and economic vitality. We look forward to being part of this community and to introducing residents to a unique shopping experience that will be unlike anything else in the market. We thank Governor Terry McAuliffe and local leaders for their support throughout this process. They have been tremendous partners to bring Lidl to the area.”
In addition to the Spotsylvania facility, Lidl will soon open the company’s U.S. headquarters in Arlington Country, VA. In total, Lidl is investing more than $200 million in its operations in Virginia and has pledged to create 700 new jobs in the state by 2018. In July, Lidl said that it will also open a regional headquarters and distribution center facility in Alamance County in North Carolina.
“I am thrilled to be a part of this groundbreaking event for Lidl’s regional headquarters and distribution center,” said Maurice Jones, Virginia’s secretary of commerce and trade. “As one of the leading European retailers, we are happy Lidl chose Virginia as its gateway to the United States. Lidl’s investment is a great testament to the outstanding talent, strong infrastructure and pro-business climate in Virginia. We look forward to continuing this great partnership with Lidl.”
“Spotsylvania County is delighted to be the home of Lidl’s regional headquarters and distribution center,” said Mark B. Taylor, Spotsylvania County administrator. “We are proud to be associated with such a well-respected and dynamic global company. It has been a real pleasure to work with the Lidl team. With their passion for quality and value, their commitment to efficiency and their determination to provide great customer service, Lidl is right in step here, and is a great new addition to Spotsylvania County.”
State Senator Bryce Reeves said, “I am pleased that Lidl has decided to establish its regional headquarters and distribution center in Spotsylvania County, bringing new jobs and opportunities to our local economy. Job growth and economic development are vital to the long-term strength of our Commonwealth, and I am glad that Spotsylvania will be the recipient of this investment.”
In April, Lidl acquired the majority of the space in a nine-story office building in Arlington, VA through its U.S. operating arm, MGP Retail Consulting LLC. The property, called National Gateway I, located at Clark Street (near Potomac Yard), is reportedly 217,000 square feet in size and includes a food lab and test kitchen. Cost for the property was reportedly $56.6 million.
Lidl has been aggressively targeting sites in Baltimore-Washington, Philadelphia, Pittsburgh, Richmond, Norfolk, Charlotte, NC and the Raleigh-Durham-Chapel Hill area of North Carolina, and sources have told us that Lidl plans to have about 100 sites secured by the time it is ready to officially open its first U.S. store.
With more than 10,000 stores, Lidl’s annual sales are approximately $100 billion and it ranks as Europe’s third largest food retailer, trailing only Carrefour and Tesco, and ahead of what will surely be its largest U.S. rival Aldi, which operates in 15 European countries and approximately 7,600 smallish European stores and an additional 1,300 U.S. stores which average about 18,000 square feet in size.
In addition to its forthcoming U.S. expansion, Lidl also plans to enter Lithuania, Serbia and Australia this year and Russia and Morocco in the near future.