LIDL GB SEES HIGHEST INCREASE IN SHOPPER VISITS ACROSS THE SECTOR AS IT CELEBRATES 30 YEARS

• Shoppers took 35 million more trips to Lidl (1) – the highest annual growth of any UK supermarket – and switched half a billion spend to the discounter (2)
• 60% of households shopping at Lidl as it continues its streak as fastest growing bricks and mortar supermarket for over a year (3)
• More recently, the discounter secured 326,000 additional shoppers, more than any other supermarket (4)
• Discounter’s latest results show turnover increased by 16.9%, almost reaching £11bn, along with increased profits (5)
• Comes as Lidl accelerates expansion with 18 new stores set to open in the next few months followed by 40 in next financial year
• Its newest store opened in Bristol last week, exactly 30 years since its first 10 stores opened in GB

As it celebrates 30 years since opening its first stores in GB this month, Lidl has revealed it experienced the highest growth in customer visits of any supermarket last year. As the fastest growing supermarket for more than a year – an unparallelled accomplishment - shoppers also switched half a billion of spending to the discounter from other grocers.

Now a firmly established family brand, 60% of households shop at Lidl and, with over 35 million more shopping trips made to Lidl stores compared to the previous year, it’s clear that customers are returning more frequently to the discounter as well. This also resulted in the highest increase of products sold across the sector, with shoppers putting over 267 million more items in their baskets than the year before (6).

The significant investments Lidl has made into its infrastructure and upgrading stores, including a quarter of a billion in fixed assets (7), has contributed to improved product freshness and an enhanced store experience. These developments, along with expanded ranges and continued commitment to competitive prices, have led to the rise in customer trips. The discounter’s rewards app, Lidl Plus, has also contributed to this boost in footfall with a 24% increase in users this year (8).

These actions have contributed to positive revenue and profit growth for Lidl, as disclosed in the discounter’s latest financial accounts published today.  In the financial year ending 28th February 2024, earnings before interest and tax [EBIT] increased to £220.8m (FY23: £28.5m) and revenue increased by 16.9% from £9.3bn to almost £11bn (9).

As well as making investments in its people and producers, spending over £20bn with British suppliers over the past five years (10), Lidl is continuing to strengthen its foundations for future growth. The discounter is now accelerating its expansion plans with 18 new stores set to open in the next few months - including nine in the next four weeks alone - followed by around 40 more over the next financial year and hundreds more after that. Its newest store opened just last week in Bristol, nearly 30 years to the day that Lidl opened its first 10 stores in GB.

More recently, the discounter secured 326,000 additional shoppers – more than any other supermarket. It saw particularly strong category growth across its fresh produce (+22%) becoming the fastest growing grocery retailer across the fresh fruit, veg and salad market, whilst bakery grew from 10.8% to 16% in the last 10 months, taking the discounter from 4th to 2nd largest retailer in the category (11).

Ryan McDonnell, Lidl GB CEO, commented: “We’ve come a long way since we opened our first stores here 30 years ago, from stocking jars of frankfurters to now having over two thirds of our products sourced from British suppliers. While our product range has continued to evolve, we’ve stayed true to our customer promise of offering the best value on the market.  In doing so, we have become trusted by households across the country to be their one-stop shop, while always supporting British food production.

“Now, 60% of households are choosing to shop at Lidl, and they’re coming back more frequently, which is a fantastic sign of increasing loyalty. We have great momentum and, although our ambitions have no ceiling, we won’t rest on our laurels. We’ve been laying the foundations for further growth whilst creating an even better store experience for shoppers. As we look to the future, our customers, colleagues, and suppliers can count on us to always offer the best value, the best pay and long-term commitments so that we can continue to grow together.”

ENDS

Notes to editor

Full financial results available on request.

References

1. Kantar, 52 w/e 25 February 2024
2. Kantar, 52 w/e 25 February 2024
3. Kantar, 52 w/e 25 February 2024
4. Kantar, 52 w/e 25 February 2024
5. Lidl, y/e 29 February 2024
6. Kantar, 52 w/e 25 February 2024
7. Lidl, y/e 29 February 2024
8. Lidl
9. Lidl, y/e 29 February 2024
10. Lidl, y/e 29 February 2024
11. Kantar, 12 and 52 w/e 03 November 2024
12. Lidl, y/e 29 February 2024

Key investments, developments and highlights for Financial Year ended 28th February 2024 (12):

• Invested £50m in colleague pay to maintain market leading rates.
• Obtained planning consent for 35 new stores, submitted planning applications for 22 and acquired a further 18 new sites.
• Opened Lidl’s largest warehouse globally in Luton and submitted planning for a new warehouse in Leeds.
• Introduced sector-leading Maternity and Adoption leave, doubling from 14 weeks to 28 weeks full pay, along with a raft of new benefits including dedicated leave for pregnancy loss and fertility treatment.
• Spent around £5bn with British suppliers, including £70m through new long-term contracts for British root veg suppliers and £40m into its egg suppliers, enabling farmers to diversify their existing business, supported by long term contracts.
• Crowned Supermarket of the Year at the Retail Industry Awards.

During the new financial year, Lidl’s momentum and investments have shown no signs of slowing:

• Published a list of priority locations for stores which will create new jobs in cities including Edinburgh, Leeds, Liverpool, and London.
• Fastest growing supermarket for over 12 months.
• Recruited over 2,000 new colleagues so far this year, who are benefitting from industry leading pay and benefits.
• Announced additional investment in hourly-paid colleagues with rates up from £12 to £12.40 across the country, and from £13.55 to £13.65 inside the M25.
• Confirmed that it was on track to invest a total of £21 billion in the British food industry by the end of FY24, exceeding its original five-year commitment of £15 billion by 40%.
• Announced plans to further enhance animal welfare credentials, including space allocated to own-label fresh chickens by 20% above the current industry standard.
• Continued championing British suppliers with commitments to beef producers equating to £1.5bn, and the egg industry through an additional £1bn as well as £500m investment into the British pork sector.
• Crowned Supermarket of the Year at the Retail Industry Awards for the second year in a row, along with Grocer of the Year at the Retail Week Awards.
• Launched inaugural Retail Leadership degree apprenticeship scheme in partnership with Kingston University, whilst also welcoming 50 new graduates through its annual graduate scheme.
• Announced the opening of 10 new stores before Christmas 2024, including three in London, creating around 400 jobs.
• Unveiled Christmas charitable drive, pledging £125,000 in grants to support charity partners hosting festive events across the country, alongside the return of Lidl’s in-store Christmas Toy Bank.

About Lidl GB

Since establishing itself in Great Britain in 1994, Lidl GB has experienced continuous growth and today has over 34,000 employees, over 960 stores and 14 distribution centres in England, Scotland and Wales.

As part of the Schwarz retail group, Lidl is one of Europe’s leading organisations in the food retail industry. The supermarket, which has around 375,000 employees globally, currently operates over 12,350 stores and more than 225 logistics centres and warehouses in 31 countries.

The supermarket takes pride in providing its customers with the highest quality products at the lowest possible prices throughout Great Britain, from Kirkwall to the Isle of Wight.

Social responsibility and sustainability are at the core of the company's daily operations, with the company placing a strong emphasis on its responsibility for people, society, and the environment. Lidl GB is passionate about working with British producers and sources two thirds of its products from British suppliers.

The Schwarz Group, which operates worldwide as a retail group, generated a revenue of €167.2 billion in the financial year 2023