Following the release of Lidl’s figures for the 52 weeks ending 29th February 2024; Aliyah Siddika, retail analyst at GlobalData, a leading data and analytics company, offers her view: “Lidl’s strategic investments in customer acquisition to drive more profitable revenue growth have started to yield positive results. The retailer reported a before tax profit of £43.6m in FY2023/24, marking a significant improvement compared to the £75.9m loss the previous year. Throughout Lidl’s financial year, food inflation rates remained high, often in double digits, leading consumers to prioritise price and opt for the discount grocer, as well as its close rival Aldi which reported similarly strong sales growth of 15.6% for 2023. Despite a slowdown in food inflation rates towards the end of the financial year, Lidl’s existing customers remained loyal, and the company saw growth in both new and existing customer volumes. This shows that Lidl’s impact on the UK food & grocery sector is not solely a result of the cost-of-living crisis, and the retailer is well positioned to maintain its market position in the long term.
“Lidl’s revenue grew by 16.9% to reach £10.8bn in FY2023/24. While this growth rate was slightly lower than the previous year, Lidl still significantly outperformed the overall UK food & grocery market which grew by 7.5% in 2023, indicating that it is continuing to gain market share. Lidl’s strategy for success includes expanding its store and warehouse footprint, which has enabled it to quickly grow its customer base and overcome location restrictions. The retailer plans to open 18 new stores in the next few months, followed by another 40 in FY2025/26, demonstrating its commitment to expanding its market presence.
“While other grocery retailers are enhancing their online services, convenience store options, and fast delivery capabilities, the German discounters, Lidl and Aldi, are not prioritising these areas. We expect Lidl to stay focused on its successful value for money proposition and store expansion strategy to sustain its appeal among consumers.”
