Supermarket Construction: Expansion and Refurbishment Fuel New Work
Glenigan reports that supermarket project starts reached £196 million in the December to February period, 28% higher than a year earlier, as grocers open new stores, refurbish existing ones and secure more planning approvals.
Discount chains, which could gain if higher oil prices squeeze consumer spending, continue to expand, while mid-market names such as Marks & Spencer and John Lewis are also investing in their physical stores. New supermarket schemes helped drive a 14% rise in detailed retail planning approvals over the same period, with approvals up more than threefold in the South East, more than fivefold in the East of England and nearly threefold in the North East.
The discounters are the most active investors. Lidl UK started 26 projects worth £122 million in the year to March and plans 50 new stores over the next 12 months as part of a £600 million programme, with openings this summer including Abbots Langley, Warrington and Thornbury. Pipeline schemes include a £3.83 million store at Penkridge and a £4.6 million store in Amersham. Aldi intends to spend £370 million this year on 40 new stores towards a target of 1,500 UK outlets. Its projects include a £6 million store in Maidstone approved on appeal, schemes in Plymouth, Wellington and Burnley, and a £560,000 extension in York.
Marks & Spencer is closing weaker high street stores but aims to double its food business, seeking large sites averaging 18,000 sq ft. It invested around £38 million across 18 schemes in the year to March, including a planned £15.6 million food hall development at Gun Cotton Way in Stowmarket.
John Lewis Partnership, having dropped its build-to-rent plans in favour of a retail-first strategy, raised investment in stores, technology and supply chain by 26% in 2025/26. Work includes a £1 million Waitrose fit-out at the former Filton Airfield in Bristol.
