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Aldi spent over 700m with Irish suppliers in 2016

Written by Robert McHugh, on 11th Sep 2017. Posted in Agriculture

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In 2016, Aldi contributed to the generation of more than €1 billion to Gross Domestic Product (GDP) in the Irish economy through job creation, spending with Irish-based businesses, tax contributions and capital investment.

This is according to a report by leading economics consultancy, Cebr, which charts the rise of Aldi from opening its first two stores in 1999 in Dublin and Cork through to the 129 stores across all 26 counties that it operates today along with its two Regional Distribution Centres at Naas and Mitchelstown. 
 
In 2016, Aldi announced plans to open 20 new stores and the creation of 400 jobs over three years in a €100m investment.  Cebr estimate that by 2020 this would see a 13% growth in Aldi’s direct and indirect employment contribution with its total employment ‘footprint’ growing from about 12,150 jobs in 2016 to at least 13,750 jobs in 2020.   

This year, it separately announced a €60m investment in a programme to convert all existing stores in to its Future Store format with a strong focus on fresh food.
 
Aldi’s average capital investment since 2005 has been €75 million annually, with a recent peak of €114 million in 2013. Since it entered the market in 1999 Aldi has invested more than €1.2 billion in capital expenditure.  This has included spend on site acquisition, construction, machinery, equipment and vehicles needed to support its network.
 
The report finds Aldi now directly employs almost 3,200 people nationally, up from 700 in 2005. Employment at Aldi grew by an average of 15% annually from 2005-2016, a period that coincides with the recession, during which unemployment hit 15% in 2011/2012.
 
In 2016, Aldi spent over €700 million with Irish producers, manufacturers and suppliers. Over 50% of sales come from products sourced from Irish based suppliers. This included included Bord Bia approved fresh meat and poultry, Irish dairy products, snacks, fruit and veg, beers and soft drinks.
 
Speaking last week, Aldi Group Managing Director, Giles Hurley said, "We are proud of the contribution Aldi has made to business, communities and families across Ireland since we opened our first stores 18 years ago.  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."

Source: www.businessworld.ie

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