UK retailer Lidl has started construction on a new warehouse in Leeds, which it said would create 400 new roles.

The discounter has completed its two-stage extension at its Belvedere site in London, investing £285 million across two buildings.

The first stage of investment, which involved the construction of a new, second warehouse, equated to £160 million, while the second stage demolished the original building to make way for a state-of-the-art warehouse, which tripled capacity.

Lidl now boasts 800,000 sq ft of warehouse space at Belvedere, a 167% increase in its footprint since first opening at the site in 2003. The discounter said that once fully operational, the site will serve 120 stores.

Construction has also started at Lidl’s 38-acre site in Gildersome, Leeds, with Lidl stating that the £150m investment was part of its commitment to scaling up to 1,000 stores.

It said the new developments would lead to over 500 new jobs, with the Belvedere expansion creating 120 new positions and the Leeds warehouse resulting in 400 new roles.

Richard Taylor, chief real estate officer at Lidl GB said: “We’re proud to play our role in driving economic growth, while continuing to establish an infrastructure that delivers sustainable growth for our ambitious expansion plans. But these investments are not just about logistics. The updates today also represent an investment in our mission to make good food accessible to households across the country.”

Rachel Reeves, Chancellor of the Exchequer, said: “This investment is a strong vote of confidence in the UK economy, and Lidl’s commitment to new warehouse facilities in London and Leeds will unlock hundreds of new jobs, strengthen supply chains, and ensure families can access affordable, quality food. Through our Plan for Change we’re backing business and working in partnership to deliver growth and opportunity in communities across the country.”