D
iscount grocery store chain Lidl has revealed its British arm swung to an annual loss after battling to maintain a lid on costs as its prices rose “across the board”.
The group reported pre-tax losses of £76 million for the yr to February 28 towards income of £41.1 million the earlier yr because it additionally invested closely within the enterprise.
Sales jumped 18.8% to £9.3 billion over the yr and the group stated it elevated its share of the grocery store sector.
But it stated the losses got here because it confronted a “challenging inflationary environment which led to an increase in costs across the board” and made important investments within the chain.
The whole retail market has seen inflation, and we are not any exception
The group “held firm on its promise” to maintain worth tags low for consumers, spending £100 million on costs, whereas it additionally invested practically £50 million in wage will increase for workers and opened 50 new shops throughout the UK.
Ryan McDonnell, chief government of Lidl’s British enterprise, stated: “The entire retail market has seen inflation, and we are no exception.
“However, for us, what is important is that our price gap to the traditional supermarkets is as strong as it has ever been.
“We’ve invested in keeping our prices low for customers in what has been a very challenging year for most.”
Lidl, which marks 30 years within the UK in 2024, stated it had opened an additional 20 shops within the first half of its new monetary yr, with ambitions for “hundreds of new stores across Great Britain”.
German low cost chains Lidl and rival Aldi have been benefiting as customers change from the primary gamers to cheaper options to attempt to minimize their meals invoice within the cost-of-living disaster.
Industry knowledge from Kantar earlier this week confirmed that Aldi and Lidl now account for 17.7% of the UK grocery sector between them, with Lidl lifting its market share to 7.6% within the 12 weeks to September 3 from 7.1% a yr earlier.
Mr McDonnell stated: “We’ve always had a clear commitment to offer the best value to our customers and that is a promise we will always keep, even in uncertain economic times.”
He added: “Next year will mark 30 years of Lidl in Great Britain, and there is no ceiling on our ambitions for the next 30 as we see the potential for hundreds of new stores across Great Britain.”
The grocery store, which is a part of the Schwarz retail group, has greater than 31,000 staff within the UK and greater than 960 shops and 14 distribution centres throughout England, Scotland and Wales.
