US: Lidl owner Schwarz secures IFC cash for E Europe push
Schwarz Group, the company behind Lidl and discount hypermarket chain Kaufland, has secured funding from the International Finance Corporation for expansion in eastern Europe.
The IFC, the investment arm of the World Bank, has said its board has agreed a loan package worth US$108.4m for Schwarz to build its business in Bulgaria and Croatia - and enter Serbia.
"Lidl ... is implementing a long-term expansion plan in Bulgaria and Croatia and is planning to enter the Serbian market in 2014 by opening new Lidl discount stores," the IFC said. "The group, one of the largest European food retail discounters, has requested IFC to provide a long-term loan to its Bulgarian, Croatian and Serbian subsidiaries to partially finance the project."
The IFC said the moves would benefit "small to large local suppliers by applying its strict standards in food quality and safety". Low-income consumers will also benefit, while the organisation said the expansion "is expected to create significant local direct employment, with a large participation of women, currently at above 60%".
Lidl could not provide immediate comment when contacted by just-food.
Lidl Bulgaria EOOD &Co. KD is part of the Lidl international chain of discounters, which operates in more than 20 European countries. At the beginning of the 2011 financial year, Lidl entered Bulgaria...
Lidl has to improve its image in terms of the quality of its products: The issue with contaminated steaks in 2011 created problems for its image and the company was still trying to improve its reputat...
The company’s main focus in 2012 was the expansion of its Slovenian outlet network. Two new Lidl outlets opened their doors in Slovenia and the same number of new stores is expected in 2013. Lidl cont...
Lidl, owned by Schwarz Beteiligungs GmbH KG, entered Croatia in 2003, but it did not start to see significant sales results before 2006. By offering a relatively large share of Lidl private label prod...
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