LIDL has underlined its growth ambitions for Scotland by revealing plans to relocate its Scottish Regional Distribution Centre (RDC) to a massive new facility within West Lothian.
The German discount chain will today tell local planning chiefs that it hopes to build new premises in Armadale nearly three times the size of its current warehouse in Livingston.
It intends to make a "substantial eight-figure investment" in building a 71,000 square metres RDC - offering significantly more capacity than the 28,000 square metres covered by its current site.
Lidl said the expansion is needed to help it cope with the growing number of shoppers it is attracting to its 90 stores in Scotland.
The company is already recruiting to expand its 300 headcount at its existing RDC, and anticipates staff numbers at its Scottish distribution operations will be higher when the new facility opens.
All staff will be transferred to the new operation, which is due to open in late 2016.
The planned investment, which comes as Lidl intends to take on 500 staff over the next 12 months, follows four years of consecutive growth for Lidl.
Alongside fellow discounter Aldi, Lidl has shaken the dominance of the big four supermarkets by winning custom from consumers seeking value at competitive prices, gaining particular traction since the financial downturn.
Lidl, which opened its first doors in Scotland in 1994, expects to turn over £4 billion in its current financial year after recording its most successful Christmas to date. Turnover last year was booked at £3.3 billion.
Lidl's progress is reflected in the latest market data from Kantar Worldpanel, the grocery sector analyst. It showed sales were up by 15.1 per cent in the 12 weeks to January 4 compared with the same period the year before.
Kantar also measure Lidl's share of the UK grocery market at 3.5 per cent for the 12-week period, down slightly on its 3.7 per cent peak.
Lidl now operates more than 610 stores and nine RDCs in Scotland, England and Wales
While Lidl and Aldi have prospered, the share commanded by established players. Tesco, Sainsbury's and Morrisons have this year announced measures to close stores, cut costs and boost their balance sheets in a bid to win back custom.
As well as planning a bigger distribution hub, Lidl said it is committed to expanding its store estate in Scotland. It plans to build at least three new stores in Scotland this year, and refurbish existing sites, which will see it increase its workforce beyond its current 1,800.
Ross Millar, managing director for Lidl in Scotland, said: "We're focused on one single goal - ensuring our customers receive the freshest, highest-quality products possible at the best value.
"This latest phase in our growth is a testament to the continuing success of Lidl in Scotland. People all over the country are realising they can make huge savings on their weekly grocery shops with us, without compromising on quality.
"The opening of our 90th store in Scotland marked our 20th year of operating here and, along with our planned investment over the next 12 months, signifies our commitment to Scotland and the communities we are proud to serve."
Lidl confirmed full plans for the new RDC have not yet been submitted to West Lothian Council. The retailer will today submit a proposal of application notice, with a public consultation on the plans expected to take place in March.
Iain Hunter, Livingston warehouse manager for Lidl, said: "The rise in customer numbers and increase in sales means we are operating an even busier warehouse than before.
"We are shipping more and more stock very day to our store network across Scotland and, as a result, we now require a new, larger warehouse to cope with the demand and anticipated future growth."
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