Lidl, a key player in the supermarket sector, has reported a significant return to profitability for the 2024 financial year, buoyed by a surge in customer visits.
In the financial year ending 28 February 2024, Lidl’s pre-tax profits climbed to £43.6 million, a stark contrast to a loss of £76 million recorded in the previous year. Sales witnessed a robust increase, surging by 16.9% to reach nearly £11 billion.
The supermarket’s earnings before interest and tax (EBIT) saw a substantial increase, soaring seven times from £28.5 million in the previous year to £220.8 million. This financial upturn reflects Lidl’s growing customer base, with 326,000 new shoppers opting to visit the discount retailer, marking the highest increase among supermarkets. Over the year, 35 million additional shopping trips were recorded at Lidl’s stores.
Ryan McDonnell, the CEO of Lidl, attributed this success to a steadfast commitment to offering the best value in the market and supporting British food production. He remarked, “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.” Lidl’s ability to retain customer loyalty is evident as 60% of households now prefer shopping with them, returning more frequently than before.
Moreover, Lidl’s position as the fastest-growing retailer with a physical presence, as reported by Kantar, underscores its impressive performance in the competitive retail landscape. This title has been held by Lidl for the fifteenth consecutive period. Lidl’s strategy includes enhancing the shopping experience while laying the groundwork for future growth.
Lidl’s impressive financial recovery underscores a successful strategy that combines competitive pricing with strong customer loyalty, paving the way for continued growth in the retail sector.
