Lidl has made a remarkable turnaround, achieving a £43.6m pre-tax profit from a previous £76m loss, attracting more shoppers than any other UK supermarket.
- Lidl’s strategic focus on efficiency over the past year has played a key role in its success, with improvements in operational models and customer availability.
- The supermarket has announced an aggressive expansion plan, signing a £70m sale and leaseback deal to open 22 new stores by Christmas.
- Lidl’s dedication to quality and value, leveraging a significant portion of British-sourced products, has strengthened customer loyalty.
- While Aldi has plateaued, Lidl continues to gain market share and consumer preference, presenting a challenge for its competitors.
Lidl has successfully shifted from a £76 million loss to a £43.6 million pre-tax profit this year, surpassing its competitors in shopper attraction. The supermarket’s focus on efficiency and operational excellence has paid off, leaving rival Aldi behind over the past year. According to recent data from Kantar, Lidl is the fastest-growing supermarket in the UK for the 15th consecutive period.
Matthew Nobbs, a retail consultant with 22 years of experience in leadership roles at Lidl, attributes some of Lidl’s successes to its improved operational model and availability, which have been fine-tuned over the last 12 months. This operational strategy has not only attracted new customers but also allowed the supermarket to resume store openings through a new sale and leaseback model.
This expansion marks a reversal from Lidl’s earlier decision to reduce new store openings, focusing instead on enhancing warehouse capacity. Recently, Lidl announced plans to continue its expansion, signing a £70 million deal to open 12 new stores and an additional 10 before the holiday season.
Lidl’s CEO, Ryan McDonnell, emphasizes quality and value as cornerstones of the business. He notes significant progress since opening their first stores, particularly in sourcing over two-thirds of their products from British suppliers, thus supporting local production while fulfilling their promise of offering market-best value. This commitment has established Lidl as a trusted one-stop shopping destination across the UK.
Kantar data indicates that 326,000 more shoppers chose Lidl over other supermarkets in the 12 weeks to November 3rd, with over 35 million additional shopping trips made during the year. McDonnell highlights the growth in shopper visits as a clear sign of increasing loyalty, with 60% of households now choosing Lidl. He notes that their ambitions are limitless, aiming to enhance customer experiences while driving growth.
Retail experts like Matthew Nobbs see Lidl’s continued growth and momentum as unstoppable due to their focus on growth and operational prowess. He points out that value chains in Germany occupy a 33% market share, indicating potential for significant expansion in the UK market.
While Lidl is gaining ground, competitor Aldi has seen slower growth. Kantar’s data reveals a stark contrast: Lidl’s sales have increased by 7.4%, boosting market share to 7.7%, whereas Aldi’s sales grew by only 1.6%, with its market share flat at 10.4%. Nobbs remarks on the difference, pointing out that while Aldi excels in performance, Lidl outshines in customer proposition and market adaptability.
Lidl’s strategic initiatives position it strongly in the competitive UK grocery market, signaling continued growth and influence.
