Lidl store investment leads to £13.6m loss

The discounter suffered a loss of £13.6m after tax in the 52 weeks to February 29, 2020, after spending £654m on acquiring new stores and other fixed assets, including a new distribution centre in Scotland. 

During the 2019/20 financial year, Lidl said it won £319.7m of consumer spend from other UK supermarkets, as more shoppers than ever walked through its stores. 

However, Lidl also kick-started a £15bn five-year investment into its suppliers and increases in the hourly rate of pay for its store employees during the year, all of which contributed to the annual loss. 

Lidl said it remained on track to open 50 new stores during 2021 despite the coronavirus pandemic. The grocer will also continue to upgrade store infrastructure, including installing larger, energy-efficient chillers, to ensure it can continue to accommodate and grow its range of fresh products.

Lidl has committed to a further £1.3bn of investment in the UK running into 2022, including a new £70m head office in Tolworth and an extension to its Belvedere warehouse in Luton. 

Lidl GB chief executive Christian Härtnagel said: “Whilst the world has changed considerably since this financial period (2019/20), our driving focus remains on offering customers the best quality products at the lowest prices in the market. We will continue to focus on providing customers up and down the country with this, as we grow our store estate, logistics and operations.

“We are confident in our strategy and see huge potential in the market long-term and will continue to hire more colleagues, invest in British suppliers, open more stores and become an integral part of more communities.

“Whilst outside of this reporting period, I want to extend my thanks in particular to all colleagues for their hard work, dedication and resilience during the COVID-19 pandemic.”