The Courier & Advertiser (Angus and Dundee)
Profits on up as shoppers switch to save
Profits at the British arm of supermarket chain Lidl have more than quadrupled with it having undertaken an expansion of stores and customers over the year, it said.
Pre-tax profits reached £41.1 million in the year to February 28, surging 319% from the £9.8m posted the same time last year.
It also saw revenues edge up by 1.5%, totalling £7.8 billion in the latest financial year, up from £7.7 bn the previous year.
The discounted chain opened 53 new stores over the year to February, bringing the total to 918 across Britain.
Lidl, named the UK’S cheapest supermarket this month by The Grocer, stressed it would continue to meet its promise to customers of offering the lowest prices in the market.
Ryan Mcdonnell, Lidl Great Britain’s chief executive, said: “It is so clear the whole industry is facing a much more inflationary environment and we are not immune to inflation, but our pricing is very strong in the market.
“We are £15 cheaper than Morrisons and £10 cheaper than Tesco in terms of the average basket, according to The Grocer’s index. And we constantly provide comparative advertising of our products. There is no doubt there is inflation in the market, but relative to that difficult situation, we still offer the best value.”
Mr Mcdonnell said he hopes the Government makes a concerted effort to
“put customers at the heart” of decisions, given that it is a “difficult time for everyone”.
Over 770,000 more people shop with the chain each week compared with last year as people switch their shop to save money, Lidl said.
That’s £58 million in total spending shoppers have switched from
traditional supermarkets, according to the research.
But Lidl cautioned that supply chain pressures have increased the risk of sufficiently meeting customer demand, and that there is “no assurance” the issues will not worsen in the future, which could further increase costs.
Mr Mcdonnell said: “Our business model is built for
the long term and I’m incredibly proud of our continued growth in recent months, which builds on our strong performance across 2021.
“As a discount store we are in the best possible position to support people through these challenging times, and it’s our absolute priority we continue to do so.”