Last updated 6th December 2022
Lidl GB
Since opening up shop in Britain in 1994, German-owned discount grocery retailer Lidl GB has grown to become the sixth largest UK supermarket group with a 7.4% market share. It now has over 935 stores and 13 distribution centres in England, Scotland and Wales with around 28,000 employees.
Lidl GB is part of the German Schwarz Group, which operates retail stores worldwide and generated a turnover of €133.6 billion in 2021.
In Britain today, the company is maintaining a focus on ‘bricks and mortar’ and has embarked on an expansion plan which will take it from 1,000 stores at the end of 2023 to 1,100 stores by end-2025. The business opened over 50 new stores in the year to February 2022 and is also investing in modernising and expanding its stores and creating more space for fresh produce.
In all, the company, which opened a new head office in Tolworth in south west London in early 2022 – and built by Winvic Construction- and is investing £1.3 billion in Britain during 20221 and 2022 and it is underway with a £500 million five year investment in London by 2025. The firm invested a total of £653 million in land fixed assets in its latest financial year.
In November 2021, Ryan McDonnell was promoted to CEO of Lidl GB. He was previously deputy CEO and had been with the group for 21 years. The previous CEO, Christian Härtnagel became CEO at Lidl Germany, the group’s largest business.
Financials
To see the financials for Lidl GB Ltd. go to Companies House and see company id 02816429
In common with all major grocery retailers, Lidl GB is well along the road to recovery from the pandemic. Revenues rose by 1.5% to £7.83 billion in the year to end-February 2022 and profit before interest and tax increased to £79.4 million from £44.04 million previously. Meanwhile, the company reported a more than four-fold increase in pre-tax profit to £41.14 million, up from £9.8 million previously. The number of trading stores rose to 918 from 865 and shareholders funds stood at £1.465 billion.
Operations and investment
In November 2021, Lidl GB unveiled plans to create 4,000 new jobs and the extra 100 stores it is opening to reach its 1,100 store target by end-2025, will be across England, Scotland and Wales. They will feature solar panels and EV charging points and will typically be sited in town centres, retail parks and city locations.
The towns and cities which Lidl is targeting for expansion include Bristol, Derby, Liverpool, London, Manchester, Nottingham, Oxford, Southampton, Swansea, Birmingham, Sheffield, Cambridge and Edinburgh. Outside London, Lidl store sizes are typically between 18,000 -26,500 sq ft with at least 100 car parking spaces and with 1.5-plus acres for stores or up to 4 acres for mixed-use schemes and are located on town or edge of centre sites or retail parks. More details on the group”s property requirements are available on its website here https://www.lidl.co.uk/about-us/property.
The group has also been recruiting staff for its new warehouses, including its Belvedere site in Kent where the first phase of an expansion programme has been completed. Lidl is also set to open a new Luton distribution centre in 2023.
Glenigan data
Glenigan data highlights Lidl GB’s significance as one of the top 50 clients for the UK construction industry. It shows Lidl ranked as the 30th largest client for the industry in the 12 months to September 2022 with 84 significant projects worth a total of £206.5 million. Glenigan data also details Lidl’s busy store opening programme. The group recently submitted detailed plans for a £3.43 million store in Stockport in Greater Manchester where work is due to start in March 2023 and run for seven months (Project ID: 20285513).
Conclusion: set to invest in its store estate to retain a competitive edge
Lidl’s formula of low prices – albeit with a more limited product range than some rivals – has gone down a storm with the British consumer and its prolific store-opening programme reflects its confidence that its popularity will endure. The scale of the company’s expansion plans across British town and cities have put it well up in the top 50 amongst British construction clients and it is on the lookout for new sites across many major population centres. As Lidl”s estate and market share expands, the potential to build more stores may become more limited in the longer term. But the tradition of fierce competition in the British grocery retail sector suggests the group will need to continue to invest heavily in its retail properties to retain its competitive edge.
How to win work with Lidl GB
Lidl GB”s construction department take a lead role in the design and construction of stores, while keeping to national specifications. The group oversees the process of store construction with the aim of making each one as efficient, innovative, sustainable, and cost-effective as possible. A supplier enquiries page and supplier information pack is available on the company”s website here. Meanwhile regional property office contacts across Lidl GB are available on its website here
Key contacts
Marcin Lenarcik, Head of Supply Chain at Lidl GB
Email: marcin.lenarcik@lidl.co.uk
Telephone: 0204 530 000
Zac Wagman, Supply Chain Manager
Email: zag.wagman@lidl.co.uk
Telephone: 0204 530 000