Aldi ‘frustrated’ in search for Dublin outlet sites

Supermarket chain insists it will not overpay for locations in capital where many rivals better represented

Grocery chain Aldi says it currently “has an interest in” about 25 separate sites across Dublin that may be suitable for building new supermarkets, as it plots significant expansion in the capital.

The group, which has more than 150 shops nationwide, currently has just 24 in the Dublin area and has long coveted a stronger position in the city where its rivals such as Dunnes Stores and Tesco are better represented.

Niall O’Connor, group managing director of Aldi Ireland, conceded that Dublin had become “a bit of a problem for us”. He said the company was “looking at it hard” to get suitable locations planning but, he said, it took twice as long to open a supermarket on a site in the city compared to other locations.

‘Ridiculous’ schemes

The company seeks sites of “a couple of acres” in the city so that it can fit in car parks, but Mr O’Connor said sites of this size were difficult to find and usually involved it having to assemble a number of different land parcels.

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He insisted the company would not overpay for sites in Dublin, nor will it do “ridiculous” building schemes in order to get schemes through planning: “Otherwise we’d have to turn around and cease being a discounter.”

“We have capital to invest. There is an opportunity for us here [in Dublin]. It is frustrating that we are not further ahead [in the city] at a time when Dublin customers need us most,” said Mr O’Connor.

He said the 25 sites it was currently examining include those where it was talking to sellers; sites upon which it had already paid a deposit; sites where it had applied for planning permission; and other developer-led schemes where it was in talks to add an Aldi into mixed-use developments.

“Not all of those sites will be built, as there is some overlap between them,” he said.

Mark Paul

Mark Paul

Mark Paul is London Correspondent for The Irish Times