Lidl swings to annual loss despite revenue increase
Lidl saw its revenue increase by 18.8% to £9.3 billion in the year to 28 February.
However, the discounter has swung to a loss of £75.9 million in the period compared to a profit of £41.1 million in the prior year.
Lidl attracted an additional 1.4 million shoppers in the year as it invested over £100 million in prices and £50 million in increasing the minimum hourly rates for store colleagues twice. It also opened almost 50 new stores whilst securing multiple new sites for future expansion.
Ryan McDonnell, Lidl GB chief executive, said: “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. Alongside preserving this price promise, rewarding our people and maintaining long-term relationships with our suppliers will always be a priority. As a privately-owned business, we have the ability to make decisions that we know will have immediate benefits for our people, customers and suppliers and long-term benefits for our business.”
In its new financial year, Lidl has opened its largest warehouse globally in Luton following an investment of £300 million and increased hourly pay rates for a third time in 12 months.
Looking ahead, McDonnell said: “As a company, we’re entering an exciting new phase of growth where we are bolstering our infrastructure to sustain us for the long term and hiring thousands of new colleagues too.
“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.”
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