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Lidl Notes Significant Increase In Customer Numbers

Lidl sign 725 x 500
  • Shoppers have switched £58m[1] spend from the four main traditional supermarkets to Lidl in the last month as they seek bigger savings 
  • Customers already stocking up on party food and Panettone with volume of sales up 21% and 8% respectively, versus previous year[2]
  • Nearly 60% of households choosing to shop at Lidl, as the discounter promises to provide customers with the lowest prices this Christmas[3]
  • Update comes as discounter publishes its accounts, reporting positive growth for the 52 weeks ending 28th February 2022:
    • Revenue up by 1.5% YoY to £7.8bn (£7.7bn, FY20/21) 
    • Revenue up 13% on a two-year comparator (£6.9bn, FY19/ FY20)
    • Profit before tax up to £41.1m (£9.8m, FY20/21)
    • Earnings before interest and tax (EBIT) up 80% to £79m (£44m FY20/21)
    • Total investment of £653m on land and fixed assets (£498m, FY20/21)

Lidl GB is seeing customer numbers continuing to increase as shoppers seek to make savings in the lead up to Christmas, with over 770,000 more people shopping with the discounter each week compared to last year[4].

As more households face further financial strain this winter, shoppers have switched £58m spend from traditional supermarkets to Lidl, in a bid to get more for their money.

Whilst making their funds go further, customers are already stocking up on key Christmas essentials with sales of Lidl’s Partytime range up 21% and its Panettone up 8% versus the previous year[5]. Shoppers are also flocking to Lidl stores for British produce, with the discounter over-trading in British meat, poultry and eggs – holding the largest market share in British pork.

With its busiest trading months ahead, the discounter is promising to continue offering the best value in the market. 

Ryan McDonnell, Lidl GB CEO, commented: “As the cost-of-living crisis deepens, we are more focused than ever on supporting our colleagues, our customers and the communities we serve. This year alone we have invested £50m raising hourly pay rates making us the highest paying retailer, we’ve donated 5m meals, and we’re serving over 770,000 more customers a week compared to last year. As a discount supermarket we are in the best possible position to support people through these challenging times, and it’s our absolute priority that we continue to do so.”

The update comes as the discounter publishes its accounts for the third year, reporting positive growth for the 52 weeks ending 28th February 2022.

Lidl GB has long been committed to investing in its business to ensure that its stores have a positive impact on the communities that it serves. During the period, Lidl GB:

  • Invested £10m increasing hourly wages from a minimum of £9.00 to £9.30 per hour outside of London and £10.55 to £10.75 within the M25, directly benefitting over 19,000 employees
  • Invested £653m in fixed assets, including its Luton and Belvedere distribution centres and over 50 new stores in the year
  • Opened its new Head Office, Lidl House, in Tolworth; a space for over 800 colleagues to collaborate and come together to support Lidl stores and RDCs across the country
  • Completed a £100m Get Fresh Programme investment, optimising store layouts, creating space for more fresh, British produce
  • Pledged to increase sales of healthy and healthier products to at least 85% of total sales by 2025
  • Became the 6th largest supermarket in the UK

Commenting on performance, McDonnell continued: “Our business model is built for the long term and I’m incredibly proud of our continued growth in recent months, which builds on our strong performance across 2021. During this time, we’ve made further investments across all areas of our business, building even more stores and distribution centres, hiring more colleagues, increasing pay rates, investing in our British supplier base and contributing to the communities we operate in.”

Since year-end (March 2022), Lidl has continued to support colleagues, suppliers and communities:

  • Raised hourly pay rates for the second time this year in October 2022 to £10.90 outside of London and £11.95 within the M25, totalling a combined investment of £50m
  • Launched a £500,000 ‘Lidl Community Fund’ to support its network of 1,500 charities across GB, along with its ‘Good to Give’ Trustmark, helping those who rely on foodbanks to get a varied diet
  • Announced new toy donation drive in the lead up to Christmas, after research revealed that toys and games were one of the most needed items by charities over the festive period, second only to food
  • Introduced UK-first trial of ‘smart’ refill stations, helping customers cut plastic and costs
  • Committed to helping farmers through the harvest by offering support to fruit and veg suppliers following the impact of extreme weather
  • Announced a finder’s fee for any member of the public that identifies a suitable site for a new Lidl store, with successful recipients receiving either 1.5% of total freehold or 10% of the first year’s rent for leaseholds, which would equate to £22,500 for a completed £1.5m site purchase

Source : Lidl 

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18 November 2022

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