Wednesday 24 November 2021

Lidl GB Returns To Profit; Sets New Store Target

Latest accounts for the year to 28 February 2021 show Lidl GB recorded a pre-tax profit of £9.8m, compared to a loss of £25.2m in the previous 12 months when it invested heavily in store openings, recruitment, and its supply chain.

Lidl’s total sales rose 12% to £7.7bn, boosted by 55 new openings and raised demand for food & drink in supermarkets during the pandemic.

NamNews Implications:
  • NPBT 0.1% is still very slender, but on the right side of breakeven.
  • And these discounters have more experience of excelling on slender margins than most…
  • And Lidl continuing to invest during loss-making lockdown…
  • …shows they are still a threat to the UK mults.
  • Meanwhile, Brexit caused ‘an increase in administration for importing and exporting goods in and out of the UK’
  • ‘Our stores in Serbia and Switzerland are very used to dealing with these issues’…
  • …referring to countries that are outside the EU but do much of their trade with the bloc.
  • i.e. All showing Lidl are still a threat to the UK mults.
#DiscounterThreat #DiscountersProfitable

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