Lidl GB saw significantly improved results in its last financial year due to store expansion and its success in attracting shoppers with low prices and its loyalty scheme.
During the year to 28 February 2025, the discounter’s revenue climbed 7.9% to £11.7bn after 38 million more customer visits were made to its stores than in the 12 months prior. Lidl noted that it experienced over £400m in direct switching from competitors as well as almost £500m in growth from customer loyalty, totalling an almost £900m increase in turnover.
The growth in shopper numbers and recent investments in its operations drove pre-tax profit up from £43.6m to £156.8m, while operating profit jumped 42.3% to £314.1m.
Lidl noted that it has maintained its position as the fastest-growing bricks & mortar grocer for more than two years, driven by its commitment to low prices and investment in the business. This has included new store openings, as well as improvements to its existing sites and warehouses. The discounter also highlighted that its popular Lidl Plus loyalty scheme was continuing to drive footfall to stores.
Latest Worldpanel by Numerator data shows Lidl now controls 8.2% of the grocery market, edging it closer to overtaking Morrisons, which has a share of 8.3%.
“Our results reflect the momentum we’ve built and the trust shoppers place in us. More households are choosing to shop with us more often, because we continue to deliver on our promise of outstanding quality at the lowest possible prices,” said Ryan McDonnell, Lidl GB CEO.
“Over the last year, we have continued to operate with our discounter efficiency at the heart of everything we do, all the while investing strategically in areas that will benefit our people, suppliers and communities. This continues to set Lidl apart, and I’d like to thank all colleagues for their support this year in driving our strategy forward. The fact we have maintained the title of fastest-growing bricks-and-mortar supermarket is testament to them.”
Lidl will mark a major milestone next month when it opens its 1,000th store in the UK as it enters its fourth decade in the country. The discounter will open 13 new stores between now and Christmas, with a total of 40 new outlets before the end of its current financial year.
NAM Implications:
- Lidl continues to prove it is a retailer made for unprecedented times.
- With a loyalty scheme that shows it can play with the Big Boys.
- OK, some of its growth comes via footprint extension…
- …but Lidl results are increasingly showing that suppliers not engaging with them are missing a trick.
