Lidl raises pay for third time in a year

LIDL is raising staff pay for the third time in a year as it prepares to open hundreds of new supermarkets.

The German discounter said it was making its pay more competitive ahead of a hiring drive, piling pressure on rivals by raising hourly rates to £12.40 from £12 outside of London and to £13.65 from £13.55 in the capital.

It claimed this represented the sector’s best hourly pay after increases in September last year and March.

The latest pay bump also comes just weeks after Lidl launched a fresh challenge to established grocers by unveiling plans to open hundreds more stores.

The company said it was targeting cities such as Edinburgh and Leeds and suburban towns like Didcot and Woking.

It follows a period of slower expansion for the business, as Lidl had prioritised investment in bolstering its warehouses.

However, Richard Taylor, chief development officer at Lidl’s UK business, said the business was now positioned for further expansion.

He said there was “no ceiling on our ambition or growth potential”, adding: “Having fortified our infrastructure with significant investments like Luton, which is the largest warehouse in the Lidl world, we’re proud to have achieved record market share this month.

“We have also been the fastest-growing bricksand-mortar supermarket for the past seven months in a row.”

The latest figures from Kantar show Lidl’s market share hit 8pc in the 12 weeks to April 14, up from 7.6pc a year earlier. It means Lidl is gaining ground on its nearest rival Morrisons.

Its decision to increase pay follows similar moves across other supermarkets in recent months.

Asda and Marks & Spencer announced pay rises for workers in the spring.

The sector has seen some of the fastest wage growth in recent years, with pay at Sainsbury’s up 50pc in the past five years.

It has fuelled concerns over inflationary pressure in the retail industry, potentially creating a roadblock for interest rates coming down.