- Discounter publishes latest accounts for the 52 weeks ending 28th February 2023 which underline significant investment in prices, colleagues, suppliers and future growth:
- Revenue up +18.8% to £9.3bn (£7.8bn FY21/22)
- Loss before tax of -£75.9m (+£41.1m FY21/22)
- Earnings before interest and tax [EBIT] £28.5m (£79m FY21/22)
- During the period Lidl GB opened more new stores than any other supermarket as customer numbers and market share continued to surge
- Its market share increased from 6.1% to 7.1% – the most rapid growth experienced by the discounter over the past five years
- Invested over £100million in keeping prices low for customers in a challenging year for millions of households
- It also maintained its position as the UK’s highest-paying supermarket by investing almost £50m in increasing the minimum hourly rates for store colleagues
Lidl GB has today released new figures that show the scale of investments made during its last financial year, as it held firm on its promise of providing its customers with the highest quality products at the lowest prices.
As more households sought to make savings during the period, the company attracted an additional 1.4 million shoppers[1] and saw its market share increase from 6.1%[2] to 7.1%[3] – the most rapid growth experienced by the discounter in the past five years. In addition to a relentless focus on price, Lidl maintained its position as the UK’s highest-paying supermarket by investing £50m in increasing the minimum hourly rates for store colleagues twice during the period.
Additionally, the discounter opened almost 50 new stores, whilst securing multiple new sites for future expansion as it continued to publish its site requirements.
The update comes as Lidl GB publishes its latest accounts for the year ending 28th February 2023.
Ryan McDonnell, Lidl GB CEO: “We’ve always had a clear commitment to offer the best value to our customers and that is a promise we will always keep, even in uncertain economic times. Alongside preserving this price promise, rewarding our people and maintaining long-term relationships with our suppliers will always be a priority. As a privately-owned business we have the ability to make decisions that we know will have immediate benefits for our people, customers and suppliers and long-term benefits for our business.”
Lidl, which sources its entire core range of fresh meat, eggs, milk, butter and cream from British suppliers, said it had spent over £4 billion with British companies last year[4], as it reaffirms its commitment to buy British wherever possible.
McDonnell continues: “The entire retail market has seen inflation, and we are no exception. However, for us, what is important is that our price gap to the traditional supermarkets is as strong as it has ever been. We’ve invested in keeping our prices low for customers in what has been a very challenging year for most and, with many more customers flooding through our doors each day, our ambition is to ensure that every single household has access to high quality, affordable food at their local Lidl store.”
During the new financial year, as it continues to invest in its future growth, Lidl GB has:
- Opened the largest Lidl warehouse globally, in Luton following an investment of £300m, leading to the creation of up to 1,500 jobs
- Completed work on an extension to its Belvedere warehouse, whilst continuing construction on the expansion of its Bridgend RDC alongside submitting plans for a warehouse in Leeds
- Opened 20 new stores in the first half of this year and published a list of priority locations for new stores alongside
- Further increased market share which is now approaching 8%
- Announced an accelerated investment of over £4bn in British food businesses for FY23
- Increased hourly pay rates for a third time in just 12 months, with store and warehouse colleagues earning a minimum of £11.40 outside London and £12.85 within the M25, bringing its combined investment over the year to £60 million
- Recruited over 6,000 new colleagues since the beginning of the year
- Been named as cheapest basket in the Super Grocer 33, four out of six times since its launch last year
Commenting on outlook, McDonnell concluded: “As a company, we’re entering an exciting new phase of growth where we are bolstering our infrastructure to sustain us for the long term and hiring thousands of new colleagues too. Next year will mark 30 years of Lidl in Great Britain, and there is no ceiling on our ambitions for the next 30 as we see the potential for hundreds of new stores across Great Britain. In many ways our brand has never been more relevant. We are, and will continue to be, a discount retailer maintaining a relentless focus on providing our customers with great quality at unbeatable prices.”
[1] Kantar, 52 w/e 25th December 2022
[2] Kantar, 12 w/e 20th February 2022
[3] Kantar, 12 w/e 19th February 2023
[4] LIDL GB TO INVEST £4 BILLION INTO THE BRITISH FOOD INDUSTRY IN 2023 – Lidl Great Britain
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