Lithuania. UAB Lidl Lietuva
| Date of agreement: | 29 Sep 2023 |
|---|---|
| Country: | Lithuania |
| Customer: | UAB Lidl Lietuva |
| Amount in EUR: | EUR 50 million |
| Maturity: | 7 years |
| NACE sector / loan type: | Retail trade, except of motor vehicles and motorcycles |
Project
The loan has been provided to finance Lidl Lithuania’s new logistics centre in Vilnius.
Currently, the company runs one warehouse in Kaunas, Lithuania’s second largest city. The addition of the new centre will enable Lidl Lithuania to continue to grow its store network in the country.
The new building will be approximately 64,000 square metres and will provide a storage area for the entire product range.
The estimated total investment cost is more than EUR 100 million. The opening of the facility is expected in 2024.
The Lidl retail company, part of the Germany-based Schwarz Group, is one of the leading companies in the food retail industry in Europe. In Lithuania, Lidl has a network of 71 stores and employs around 2,700 people.
Fulfilment of NIB's mandate
Since Lidl’s entry to Lithuania in 2016, the company has grown rapidly, having a market share of around 13% in 2022. Over the last three years, Lidl has been opening an average of seven stores per year in the country, improving competition in the retail sector.
The new logistics centre will therefore enable further growth by doubling the warehouse capacity and enhancing the efficiency of the overall logistics chain.
This will further intensify the market competition in Lithuania, where groceries account for approximately 20% of household expenditure – the second highest rate in the EU. An increase in competition has significant welfare consequences, particularly for lower-income households, which allocate a larger portion of their income to groceries than wealthier households.
Impact indicators in relation to the investments:
- Capex: around EUR 100 million
- Average annual (3 year) growth in number of stores: 6.7
- Market share: 13%
- Employees: around 2,700
- Installed solar panel capacity: 2 MW
- Electricity generated with solar panels: 1,900 MWh/a
- Waste heat recovery: 1,700 MWh/a
Sustainability summary
The project has environmental and construction permits in place.
Most of Lidl Lithuania buildings have been certified under the EDGE green building certification system. The project will provide some marginal environmental benefits due to more efficient routes, reduced supply truck mileage, as well as new solar energy capacities and waste heat recovery from refrigerators.
