German budget supermarket Lidl plans to create up to 400 jobs by ploughing £55m into a new regional distribution centre (RDC).

The new Southampton warehouse is the 10th RDC launched by Lidl as it presses ahead with a major expansion across the country.

The firm announced in November last year that it planned to invest £1.5bn in Britain over three years to bolster the number of warehouses and stores.

Lidl and its fellow German discount chain Aldi have shaken up the UK grocery sector and sparked a bitter supermarket price war by stealing market share from Tesco, Asda, Sainsbury's and Morrisons.

Marco Ivone, regional director at Lidl UK, said the company would continue to invest in the south of the country as it rolls out its expansion plans.

Earlier this year, Lidl said it would relocate warehouses in Weston-Super-Mare and Livingston to Bristol and Eurocentral respectively.

It is also in the throes of opening two new warehouses in Wednesbury and Exeter, while expanding its RDCs in Newton Aycliffe and Runcorn.

Lidl sales grew by 8.4% and its market share rose to 4.6%, according to the latest Kantar Worldpanel figures published in October.