Supermarket construction: Expansion and refurbishment fuel new work

Supermarket construction sees project starts rise 28% year‑on‑year to £196 million, as store expansion, refurbishments, and rising planning approvals drive new work across the retail sector

The discount supermarkets, which stand to benefit from any tightening in consumer spending brought on by higher oil prices, are continuing to open new stores and update their existing outlets.

Meanwhile, mid-market brands such as Marks & Spencer and John Lewis are also investing in their physical stores as part of broader retail strategies and to attract more shoppers.

Insights from the Glenigan Construction Review show that project starts by supermarkets were worth £196 million in the December-February period, up 28% on the same time a year earlier.

New supermarket construction developments by the major grocery chains were also among the key drivers behind a 14% rise in detailed planning approvals across the whole retail sector over the same period.

Glenigan data highlights big rises in retail planning approvals in the South East (up more than threefold in December-February over the previous year), the East of England (more than fivefold), and the North East (nearly threefold).

Prolific investors

According to Glenigan data, discount retailers are the most prolific investors in new supermarket construction developments. Figures from the March edition of the Glenigan Construction Review show that Lidl UK started work on 26 separate projects worth £122 million over the year to March.

Aldi recently outlined plans to invest £370 million this year to open 40 new stores across the country as part of its long-term goal to expand its estate to 1,500 UK supermarkets.

Meanwhile, earlier this month, Lidl unveiled plans to open 50 new stores over the coming 12 months as part of a £600 million investment across its British estate. According to Glenigan data, the chain is planning to open stores nationwide, including Abbots Langley near Watford, Warrington in Cheshire (Project ID: 23199047), and Thornbury near Bristol (Project ID: 23259938), which are all set to open this summer.

Glenigan project information confirms numerous other new supermarket construction projects in the pipeline at the major discount retailers.

For example, detailed plans have been submitted, and work is due to start in October on a £3.83 million Lidl supermarket store at Penkridge near Stafford (Project ID: 25443666). Plans have also been submitted, and work is set to start this autumn on a £4.6 million Lidl supermarket in Amersham in Buckinghamshire (Project ID: 25392394).

Meanwhile, construction work is set to start later this spring – and tenders have yet to be invited – on a £6 million Aldi store at Maidstone in Kent (pictured) after plans were recently approved on appeal (Project ID: 22449385).

Glenigan project information confirms details on other new significant Aldi stores in the pipeline, including projects at Plymouth (Project ID: 26066134), Wellington in Somerset (Project ID: 25212479), and Burnley (Project ID: 21441557).

Work on smaller extensions and refurbishment projects for the discount chains also offers opportunities. For example, detailed plans have been approved, and work is due to start this summer on a £560,000 supermarket extension at an Aldi supermarket at Fulford Road in York (Project ID: 25063058).

Appetite for food stores

While M&S has been closing many of its less viable general high street stores, the group is investing heavily in expanding its food store estate.

Indeed, the group is aiming to double the size of its food business, both through new stores and by expanding existing ones. After opening four new large ‘family-format’ stores in March alone, further expansion is in the pipeline. Across the UK, M&S says it is looking for new, large sites for its food stores, typically averaging 18,000 sq ft across 500 UK locations.

Glenigan project data shows that Marks & Spencer invested some £38 million across 18 different supermarket construction schemes in the year to March. One significant project where the retailer has submitted detailed plans and work is due to start this autumn is the £15.6 million M&S Gun Cotton Way in Stowmarket in Suffolk. It involves a new 2,000 sq m-plus food hall along with two other retail units (Project ID: 23366568).

Meanwhile, under a new ‘retail-first’ strategy, John Lewis Partnership is investing more in enhancing its existing stores after abandoning an earlier diversification into Build-to-Rent flats. During the financial year 2025/26, the group – which includes Waitrose – invested 26% more than the prior year in its stores, technology, and supply chain.

One supermarket construction project due to start this autumn, for which the contract has been awarded, is a £1 million fit-out of a Waitrose supermarket store and completion of a building shell at the former Filton Airfield in Bristol (Project ID: 25333494).