UK supermarket chain Lidl to open London Gateway warehouse

Lidl UK would begin operating out of the 187,000-square-foot distribution facility from February next year. Simon Dawson / Bloomberg

DP World has signed a deal with UK supermarket Lidl for a distribution facility at its vast London Gateway development.

Lidl UK said it would begin operating out of the 187,000-square-foot distribution facility next to the deepwater port on the banks of the Thames in Thurrock, Essex, from February next year.

In a statement on Monday, DP World said that Lidl would occupy the warehouse areas of its Logistics Centre.

DP World officially opened the first phase of distribution and logistics space in July last year in conjunction with UK-based logistics service provider Import Services Limited.

The port operator is planning to increase the size of the centre to 380,000 square feet based on market demand.

As well as being one of the UK’s largest ports, DP World London Gateway will also include one of the country’s largest logistics parks, which is expected to one day extend over 9.5 million sq ft. In total, the distribution park at London Gateway will cover 300 Hectares.

“As we push forward with our UK expansion plans we continue to strengthen our core infrastructure in order to support our new and existing stores up and down the country,” said Adrienne Howells, Lidl’s head of warehouse expansion.

“We are, therefore, pleased to have found a viable facility at DP London Gateway Logistics Park that meets our current distribution requirements.”

Tenants that plan to set up in the park include the logistics company UPS and truck company Eddie Stobart.

In 2014, the British retailer Marks & Spencer backed out of plans to build a 900,000 sq ft warehouse in the London Gateway citing wishes to use its “capital investment more ­efficiently”.

Follow The National's Business section on Twitter