Lidl has experienced a significant financial turnaround, as the discount supermarket chain has returned to profit in its most recent financial year, driven by a substantial increase in shopper visits.
In the financial year ending 28 February 2024, Lidl reported pre-tax profits of £43.6 million, a stark contrast to the previous year’s loss of £76 million. This impressive recovery was supported by a notable increase in sales, which climbed by 16.9% to nearly £11 billion. Moreover, the supermarket’s earnings before interest and tax (EBIT) surged from £28.5 million to £220.8 million, marking a seven-fold increase compared to the prior year.
The chain attracted 326,000 new shoppers—more than any other supermarket—resulting in over 35 million additional shopping trips throughout the year. These figures underscore the brand’s growing appeal among UK households, a trend that is attributed to its commitment to value and local sourcing.
Lidl’s CEO, Ryan McDonnell, expressed pride in the company’s progress since its inception in the UK three decades ago. He highlighted the supermarket’s dedication to offering the best value in the market and its evolution from stocking imported products to sourcing over two-thirds of its range from British suppliers. McDonnell emphasised that 60% of UK households now choose Lidl, reflecting a significant and growing customer loyalty.
The retailer’s rapid growth is further evidenced by its repeated recognition as the fastest-growing bricks-and-mortar retailer, a title it has held for 15 consecutive periods according to Kantar data. Lidl attributes this success to laying the ‘foundations for further growth’ while enhancing the store experience for its customers.
Lidl’s return to profitability, driven by increased customer visits and a strong value proposition, positions it well for continued growth in the competitive supermarket landscape.
