Summary
Lidl has seen annual sales exceed £13bn, after attracting an extra 43m shopping trips. The value supermarket is now gearing up to open more than 50 new stores, as it attempts to close the gap on rival Aldi. Turnover was up 10.8% in the year to February 28, while operating profit rose 9.9% to £345m, as reported by Retail Gazette.
Details
More than 40 store openings during the year helped Lidl bring in an additional 43m customer visits, as it continued to take market share from larger rivals. The retailer is now working on more than 50 new openings during the current financial year, backed by £600m of investment in stores and infrastructure. The expansion programme, announced earlier this year, is expected to create nearly 2,000 jobs.
But Ryan McDonnell, Lidl UK chief executive , warned that planning delays are hitting investment and costing jobs, as reported by This is Money. He said: “Any planning delays or administrative bottlenecks can of course slow down crucial investments, job creation, and local economic growth.
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“We would welcome reform that creates a faster, more efficient planning process.” Gloucestershire is already well covered by Lidl – with four stores in Gloucester, three in Cheltenham and one each in Bishop’s Cleeve, Stroud, Cirencester, Cinderford, Coleford and Lydney. The retailer recently overtook Morrisons to become Britain’s fifth-largest supermarket.
Its market share reached 8.7% in the 12 weeks to September 6, compared to 8.3% a year earlier. Rival Aldi currently has 10.6% of the UK grocery market, down from 10.8% a year ago. The gap between the two German discounters has narrowed from 2.5 percentage points to 1.9 points in the space of year, despite Aldi having more stores.
Lidl’s recent growth has been boosted by its Lidl Plus loyalty app, while Aldi continues to resist introducing a loyalty scheme. Last week, Aldi announced plans to invest a record £900m in Britain in 2027, including 40 new stores and additional spending on its distribution network. Its new Bishop’s Cleeve store is close to completion.
Report source: Punchline Gloucester
