LONDON, Sept 14 (Reuters) – The British arm of German discount supermarket Lidl posted a 19% jump in revenues as its low prices attracted higher numbers of shoppers, but it swung to a loss due to higher costs from inflation and investments in new stores.
Lidl GB and rival discounter Aldi UK are Britain’s fastest growing grocers, according to market researcher Kantar.
Their appeal has grown during Britain’s cost-of-living crisis as shoppers have sought savings and, unlike their traditional rivals like Tesco and Sainsbury’s , they continue to open new stores.
For the 12 months to Feb. 28, 2023, Lidl GB said it welcomed an additional 1.5 million customers, driving revenues up to 9.3 billion pounds, but the company, part of Germany’s Schwarz retail group, posted a pre-tax loss of 76 million pounds ($94.97 million).
Lidl GB, Britain’s sixth largest supermarket with a market share of 7.6%, has in the past said it is relaxed about its relatively low profitability because of its long-term outlook.
It said in a statement it had the full support of its parent company, adding it has invested 533 million pounds in Britain in the year and opened over 50 new stores.
The discounters’ performance has forced the traditional major players to compete more aggressively and they have accepted a profit hit to keep prices down.
($1 = 0.8003 pounds)