Key facts
- Lidl GB sales rose 10% to over £13 billion in the year ended February.
- Pre-tax profit at Lidl GB increased 30% to £245.5 million.
- Lidl GB spent £315 million on price cuts and promotions.
- Sales of Lidl's Deluxe range grew 12%.
- Lidl GB's market share was 8.6% in the 12 weeks to May 17, overtaking Morrisons.
- Morrisons' market share was 8.3% with 1.3% sales growth.
Lidl GB reported a 10% increase in sales, reaching over £13 billion for the year ended in February, as consumers turned to discounters amid rising food inflation. The German-owned supermarket's pre-tax profit in Great Britain grew by 30% to £245.5 million, up from £156.8 million in the previous year.
Shoppers have increasingly opted for budget-friendly options, with in-store price inflation at 1.5% in August, up from 0.9% in July, and fresh produce inflation at 3%. Lidl attributed its performance partly to £315 million spent on price cuts and promotions, as well as a 12% rise in sales for its Deluxe upmarket food range. Lidl GB chief executive Ryan McDonnell noted that more households are dining at home and seeking to "trade up and treat themselves at home."
Lidl GB surpassed Morrisons to become the fifth-largest grocer in Great Britain, holding an 8.6% market share in the 12 weeks to May 17, compared to Morrisons' 8.3% share and 1.3% sales growth. Both Aldi and Lidl have experienced rapid growth, partly due to slower performance from Asda and Morrisons following their private equity acquisitions. However, Aldi's growth has recently slowed as Tesco and Sainsbury's have become more competitive with their loyalty programs.
Lidl's loyalty program, Lidl Plus, saw a 23% rise in participants, contrasting with Aldi's approach, according to analyst Clive Black. Aldi UK boss Giles Hurley has previously criticized loyalty discounts, suggesting some start with unrealistically high prices. A UK competition watchdog investigation in 2024 found that supermarket loyalty pricing schemes generally offer genuine savings to shoppers.