Lidl is to build a 1,000,000ft² warehouse and RDC in Luton as part of its £1.45bn investment plan for the UK.
When complete, the facility will be double the size of the largest of its 15 other UK warehouses.
The RDC will service Greater London, providing support to Lidl's warehouses in Belvedere, Northfleet and Enfield.
The supermarket has ambitious plans for growth within the M25, and said the new site will be "vital" for their success.
In the next two months, Lidl will open new stores in Shepherds Bush, Walthamstow Central, South Ruislip, Hornchurch and Rosehill.
Construction of the new RDC, which Lidl said will create 1,000 new jobs, is scheduled to begin in early 2019.
Ingo Fischer, Lidl UK board director for expansion and development, said: “As more London households choose to shop at Lidl we are committed to the continued investment in our operations and infrastructure to support our growth.
“With five new stores opening in the next two months alone, and further store expansion and development plans in place for the Greater London area across the new financial year and beyond, this new warehouse is vital in supporting our ambitious expansion plans in and around the M25.”
Last year Lidl opened two new RDCs in Exeter (pictured) and Wednesbury, and announced it would be building warehouses in Doncaster, Bolton and Peterborough.
It has also begun building work on new warehouses in Avonmouth and Eurocentral, which will replace existing facilities in Weston-Super-Mare and Livingston respectively.
