As it celebrates 30 years since opening its first stores in GB this month, Lidl has revealed it experienced the highest growth in customer visits of any supermarket last year. As the fastest growing supermarket for more than a year – an unparalleled accomplishment – shoppers also switched half a billion of spending to the discounter from other grocers.
Now a firmly established family brand, 60% of households shop at Lidl and, with over 35 million more shopping trips made to Lidl stores compared to the previous year, it’s clear that customers are returning more frequently to the discounter as well. This also resulted in the highest increase of products sold across the sector, with shoppers putting over 267 million more items in their baskets than the year before.
The significant investments Lidl has made into its infrastructure and upgrading stores, including a quarter of a billion in fixed assets, has contributed to improved product freshness and an enhanced store experience. These developments, along with expanded ranges and continued commitment to competitive prices, have led to the rise in customer trips. The discounter’s rewards app, Lidl Plus, has also contributed to this boost in footfall with a 24% increase in users this year.
These actions have contributed to positive revenue and profit growth for Lidl, as disclosed in the discounter’s latest financial accounts published today. In the financial year ending 28th February 2024, earnings before interest and tax [EBIT] increased to £220.8m (FY23: £28.5m) and revenue increased by 16.9% from £9.3bn to almost £11bn.
As well as making investments in its people and producers, spending over £20bn with British suppliers over the past five years[10], Lidl is continuing to strengthen its foundations for future growth. The discounter is now accelerating its expansion plans with 18 new stores set to open in the next few months – including nine in the next four weeks alone – followed by around 40 more over the next financial year and hundreds more after that. Its newest store opened just last week in Bristol, nearly 30 years to the day that Lidl opened its first 10 stores in GB.
More recently, the discounter secured 326,000 additional shoppers – more than any other supermarket. It saw particularly strong category growth across its fresh produce (+22%) becoming the fastest growing grocery retailer across the fresh fruit, veg and salad market, whilst bakery grew from 10.8% to 16% in the last 10 months, taking the discounter from 4th to 2nd largest retailer in the category[11].
Ryan McDonnell, Lidl GB CEO, commented: “We’ve come a long way since we opened our first stores here 30 years ago, from stocking jars of frankfurters to now having over two thirds of our products sourced from British suppliers. While our product range has continued to evolve, we’ve stayed true to our customer promise of offering the best value on the market. In doing so, we have become trusted by households across the country to be their one-stop shop, while always supporting British food production.
“Now, 60% of households are choosing to shop at Lidl, and they’re coming back more frequently, which is a fantastic sign of increasing loyalty. We have great momentum and, although our ambitions have no ceiling, we won’t rest on our laurels. We’ve been laying the foundations for further growth whilst creating an even better store experience for shoppers. As we look to the future, our customers, colleagues, and suppliers can count on us to always offer the best value, the best pay and long-term commitments so that we can continue to grow together.”
