Lidl plans to have 1,100 stores across Britain by 2025, after raising staff salaries and earning billions of pounds in sales during the epidemic.
- Lidl has updated its store growth plans to 1,100 nationwide by 2025
- The German-based discount supermarket still plans to have 1,000 stores by 2023
- Statistics show that Lidl’s sales jumped 12% to £ 7.7bn in the year to the end of February
- Rival discount supermarket Aldi has plans to increase its store numbers
Lidl has revealed its efforts to dominate large areas of the UK high street with the creation of 4,000 new jobs over the next three years.
German-based concession supermarket bosses have said they expect to reach 1,000 stores by 2023, and a new target for 1,100 sites by 2025.
The move comes as the grocery retailer publishes its year-end accounts at the Companies House, which shows how it benefited from being a ‘necessary’ retailer during the epidemic.
Grocery sales rose 12 per cent to £ 7.7 billion, while pre-tax profits reached £ 9.8 million, compared with a loss of £ 25.2 million the previous year.
Expanding: Lidl reveals his efforts to dominate large areas of UK high streets
Unlike British supermarkets, private-owned Lidl does not publish sales figures for the UK, which eliminates the impact of new store openings.
German Grocery currently has 880 stores nationwide, and has already opened 55 new stores since the beginning of this year. In total, the grocery will open 240 new supermarkets.
He spent £ 17.5 million last year on staff salaries, including £ 8 million in hourly wage increases and £ 9.5 million in bonuses during the epidemic.
Profits may have been higher, but Chancellor Rishi Sunak agreed to reimburse Lidl £ 100m business rates savings with most of its rivals when it cut taxes to boost the economy.
Several ‘essential’ retailers made refunds because they were open when other stores closed due to a surge in sales.
Lidl GB Chief Executive Christian Hartnagel said: ‘We have delivered impressive business performance over a period of time supported by our continued investment in new and existing stores, product innovation and our people.
“All of this has contributed to the growth of our revenues and profits and has made us a better place for further growth in the years to come.”
Impact: Despite strong sales in the fiscal year, bosses at Lidl said the Brexit deal was having an impact.
The grocery retailer points out that consumers who are at risk for Lidl are becoming more environmentally conscious if they don’t deal with excess packaging and net-zero supply chains.
The supermarket will reduce plastic in its own branded packaging by 40 per cent by 2025 and cut its own label packaging by a quarter in the same year.
Bosses have revealed that despite strong sales in the fiscal year, Brexit has affected business.
Recent accounts say there has been an increase in the import and export regime since the end of the transition period at the end of 2020, and warned of expanding customs agents, which could limit the ability to process goods more efficiently.
Ambition: Aldi plans to open 100 new stores nationwide over the next two years
Lidl added that the UK border was suffering from delays due to the absence of government guidelines for certain shipping lines, and costs on item-by-item and shipping costs due to customs duties and import costs.
Lidl accounts for 6.2 percent of the UK grocery market but does not trade online.
Earlier this month, Aldi revealed the location of 15 new stores, which will open nationwide by the end of the year.
The rival German concession supermarket, which currently has more than 930 UK stores, will open new stores in Bedlington, Edinburgh, Arpington, Pool and Windsor among other locations.
The fast-expanding grocery store said each new store would create about 30 new jobs.
The 15 new stores are part of Aldi’s drive to invest more than £ 1.3 billion to expand its retail portfolio and open 100 new stores over the next two years.
Aldi said This Is Money, which now has more than one outlet in over 130 towns and cities across the country.