In a bold reaffirmation of its core mission, Lidl GB’s CEO, Ryan McDonnell, has announced the supermarket’s unwavering commitment to providing customers with the best value. As the discounter releases its latest financial figures for the year ending February 28, 2023, it becomes clear that Lidl GB’s relentless focus on price has paid off, attracting an additional 1.4 million shoppers and driving market share from 6.1% to a rapid 7.1%.
A Year of Remarkable Growth
During a challenging year for households across the UK, Lidl GB reported impressive growth. Revenue soared by 18.8%, reaching £9.3 billion, marking a significant increase from the previous year’s £7.8 billion. While the supermarket did report a loss before tax of -£75.9 million, this can be attributed to the substantial investments made in various areas of the business.
Investments for the Future
Lidl GB’s commitment to its customers is evident in its investment of over £100 million in maintaining low prices, a lifeline for millions of households. But the company’s dedication extends beyond just offering affordable products. It also solidified its position as the UK’s highest-paying supermarket by investing nearly £50 million in raising the minimum hourly rates for its store colleagues.
Market Share on the Rise
The surge in customer numbers and market share is a testament to Lidl GB’s appeal. With market share growing from 6.1% to 7.1% in just one year, this is the fastest expansion the discounter has seen in the past five years. It’s a clear indication that Lidl’s commitment to affordability is striking a chord with consumers seeking to make savings without compromising on quality.
Supporting British Suppliers
Lidl GB’s commitment to supporting British businesses is unwavering. The supermarket sourced its entire core range of fresh meat, eggs, milk, butter, and cream from British suppliers, contributing over £4 billion to the UK economy. This commitment underscores Lidl’s dedication to buy British whenever possible.
As Lidl GB enters a new phase of growth, it has made significant strides to secure its future. The opening of the largest Lidl warehouse globally in Luton, an investment of £300 million, has created up to 1,500 jobs. The company also completed work on extending its Belvedere warehouse while continuing expansion efforts at its Bridgend RDC, with plans for a new warehouse in Leeds.
Accelerated Investment and Wage Increases
In the coming financial year, Lidl GB plans to accelerate its investment in British food businesses, committing over £4 billion. The supermarket will also increase hourly pay rates for store and warehouse colleagues for the third time in just 12 months, ensuring they earn a minimum of £11.40 outside London and £12.85 within the M25. This brings the total investment in employee wages to £60 million.
Continued Expansion and Recognition
In addition to these impressive developments, Lidl GB has been actively recruiting, bringing in over 6,000 new colleagues since the beginning of the year. The supermarket has also garnered attention as the “cheapest basket” in the Super Grocer 33, a significant achievement for a discount retailer.
A Bright Future Ahead
As Lidl GB looks ahead, Ryan McDonnell, the CEO, is optimistic about the company’s future. With an eye on potential expansion, he envisions hundreds of new stores across Great Britain in the next 30 years. In a retail landscape where affordability is paramount, Lidl GB’s commitment to providing great quality at unbeatable prices is more relevant than ever. The journey to provide the best value to customers continues, backed by a strong focus on quality and growth.