Lidl plans 1,100 stores across Britain by 2025

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  • Lidl has updated its store growth plans to 1,100 nationwide by 2025
  • German-based discount supermarket still plans to have 1,000 stores by 2023
  • Lidl sales jump 12% to £7.7bn by end-February, figures show
  • Rival discount supermarket Aldi also plans to increase its store count

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Lidl has revealed that its efforts to dominate large stretches of UK high roads will continue with the creation of 4,000 new jobs over the next three years.

The owners of the German-based discount supermarket said they expect to reach their goal of having 1,000 stores by 2023, and set a new target for 1,100 sites by 2025.

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The move comes as the grocer published its accounts at the Company House as of the end of February, showing how it benefited from its status as an ‘essential’ retailer during the pandemic.

Grocer sales rose 12 percent to £7.7 billion, while profit before tax reached £9.8 million, compared to a loss of £25.2 million a year earlier.

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Explanation: Lidl reveals that its efforts to dominate large areas of UK high roads will continue at speed

Unlike British supermarkets, privately owned Lidl does not publish similar sales figures for the UK which removes the impact of new store openings.

The German grocer currently has over 880 stores nationwide, having opened 55 new outlets since the beginning of this year. In total, the grocer will open 240 new supermarkets.

The bosses said they spent £17.5 million on staff pay increases over the past year, including £8 million on hourly wage increases and £9.5 million on bonuses during the pandemic.

Profits may have been higher, but Lidl, along with most of its rivals, agreed to pay more than £100 million in trade rate savings when Chancellor Rishi Sunak removed the tax to bolster the economy.

Many ‘essential’ retailers repurchased due to spikes in sales as they remained open while other stores were closed.

Christian Hartnagel, chief executive of Lidl GB, said: ‘We delivered an impressive business performance over this period, which was supported by our continued investments in new and existing stores, product innovation and our people.

‘All of these contributed to the growth in our revenue and profits and positioned us well for further growth in the years to come.’

Impact: Despite strong sales during the fiscal year, Lidl's owners say Brexit has hit business

Impact: Despite strong sales during the fiscal year, Lidl’s owners say Brexit has hit business

Grocer also pointed out that customers are becoming more environmentally conscious, which could pose a risk to Lidl if it doesn’t deal with concerns about excess packaging and net-zero supply chains.

It said supermarkets would reduce plastics in their self-brand packaging by 40 percent by 2025 and cut the total amount of self-label packaging by a quarter in the same year.

Despite strong sales during the fiscal year, the owners also disclosed that Brexit had affected business.

The latest accounts say there has been an increase in the administration for imports and exports since the end of the transition period in late 2020, and warns that customs agents are being increased, who can handle goods more efficiently. limiting their ability to process.

Ambitious: Aldi plans to open 100 new stores nationwide in next two years

Ambitious: Aldi plans to open 100 new stores nationwide in next two years

Lidl said it faced delays at the UK border due to missing government guidelines for some shipping lines, and saw cost increases on an item-by-item and shipment-by-shipment basis due to customs duties and import costs. Went.

Lidl has a 6.2 per cent share in the UK grocery market but does not do business online.

Earlier this month, Aldi revealed the location of 15 new stores opening nationwide by the end of the year.

Rival German discount supermarkets, which currently have more than 930 UK stores, will open new stores in Bedlington, Edinburgh, Orpington, Poole and Windsor, among other locations.

The fast-growing grocer said each new store would create about 30 new jobs.

The 15 new stores are part of Aldi’s drive to expand its retail estate portfolio and invest more than £1.3 billion to open 100 new stores over the next two years.

Aldi points out that it’s money now that it has more than one store in about 130 towns and cities up and down the country.

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