Lidl GB reports a significant return to profitability, marking a milestone in its UK operations.
- The supermarket records the highest annual increase in shopper visits across the sector.
- Pre-tax profits for the fiscal year ending 28 February hit £43.6 million.
- Sales grew by 16.9% to nearly £11 billion, setting a new record.
- The chain plans to open numerous new stores, boosting its presence further.
Lidl GB has made an impressive return to profit, celebrating this turnaround as it marks three decades since opening its first stores in the UK. The retailer achieved the highest growth in shopper visits within the grocery sector over the past year, attributed to strategic investments and a renewed focus on competitive pricing.
For the financial year concluding on 28 February, Lidl’s pre-tax profits soared to £43.6 million, a significant recovery from a previous loss of £76 million. This financial upturn is complemented by a robust 16.9% increase in sales, reaching a record high of almost £11 billion. These figures underscore Lidl’s successful strategies in capturing a larger share of the market.
The supermarket’s earnings before interest and tax saw a remarkable increase, jumping from £28.5 million the year before to £220.8 million. Such financial success is largely driven by an additional 35 million shopping trips made to Lidl, a shift that included a transfer of half a billion pounds in spending towards the German discounter.
Lidl’s commitment to British food production and expansion is further illustrated by a 40% increase in investment in UK food sourcing. The company attributes its success to upgrades in infrastructure, store enhancements, expanded product ranges, and the effective use of its Lidl Plus rewards app, all of which have attracted new customers and maintained their loyalty.
Looking to expand its footprint, Lidl is planning to open 18 new stores in the upcoming months, with around 40 more expected in the next financial year. This expansion aligns with Lidl’s continued ambition to provide quality products at competitive prices, underpinned by its strategy of supporting British suppliers. “We’ve come a long way since we opened our first stores here 30 years ago,” said Lidl GB CEO Ryan McDonnell, emphasising the company’s evolution and ongoing commitment to customer satisfaction.
Lidl’s strategic focus on competitive pricing and expansion continues to drive its success in the UK market.
