Discounter is continuing its expansion strategy in Britain
Lidl has increased both revenue and profits as it continues its expansion in Britain.
The discounter, which reported its full-year financial results this week, revealed a 7.9 per cent growth in revenue to £11.7bn and £156.8mn profit before tax, up from £43.6mn the year before. Operating profit also increased from £220.8mn to £314.1mn.
During the period, 38 million more customer visits were made to the discounter than in the year prior, Lidl said, noting that it also experienced over £400mn in direct switching from competitors as well as almost £500mn in growth from customer loyalty.
Lidl maintained its position as the fastest-growing bricks-and-mortar grocer, a title it has now held for more than two years.
Alongside its low-price commitments, Lidl said strategic investments over the year included upgrading and expanding infrastructure, such new store openings, and enhancements and renovations of existing stores and warehouses.
It also increased staff pay, totalling a £40mn investment over the financial year, with over 3,000 new staff joining the business. Investment in British suppliers reached £5.65bn.
Ryan McDonnell, Lidl GB CEO, said: “Our results reflect the momentum we’ve built and the trust shoppers place in us. More households are choosing to shop with us more often, because we continue to deliver on our promise of outstanding quality at the lowest possible prices.
“Over the last year we have continued to operate with our discounter efficiency at the heart of everything we do, all the while investing strategically in areas that will benefit our people, suppliers and communities.
“This continues to set Lidl apart and I’d like to thank all colleagues for their support this year in driving our strategy forward. The fact we have maintained the title of fastest-growing bricks-and-mortar supermarket is testament to them.”
The discounter also pointed out that it has upgraded existing stores in its portfolio over the past six months, optimising layouts to enhance the fresh produce and bakery categories.
Looking ahead, the supermarket chain will mark a milestone next month when it opens its 1,000th store as part of its broader expansion plans.
