The British division of the German discount supermarket Lidl reported a 19% increase in sales due to its cheap pricing attracting more consumers. Despite this, the company lost due to increased expenses due to inflation and investments in additional shops.
According to data conducted by Kantar, the discount grocers Lidl GB and Aldi UK, who are competitors, are the most rapidly expanding in the United Kingdom.
They continue to establish new shops, in contrast to conventional competitors like Tesco (TSCO.L) and Sainsbury’s (SBRY.L), which has led to an increase in their popularity among consumers who are trying to cut costs in light of the rising cost of living in Britain.
Lidl GB, a member of Germany’s Schwarz retail group, reported a loss before taxes amounting to 76 million pounds ($94.97 million) for the year ending February 28, 2023. Even though the firm said it had welcomed an extra 1.5 million consumers, it drove sales up to 9.3 billion pounds.
In the past, Lidl GB, the sixth biggest supermarket in Britain with a market share of 7.6%, has said that it is unconcerned with its comparatively low profitability due to its long-term vision.
It said in a statement that it had the complete backing of its parent business, and it added that it had spent 533 million pounds in Britain over the year and established more than 50 new shops.
The success of the discounters has caused the conventional big players to compete more aggressively. Companies have agreed to reduce their profits from the current pricing structure.
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