Blog: Lidl to up expansion rate in UK
Katy Askew | 2 December 2013
News that Lidl wants to more than double its number of stores in the UK within the next three years could signal competition is heating up further still in what is already a hotly-contested market.
The retailer has 600 UK stores, commanding a 3% market share. It is eyeing taking that network to at least 1,200 outlets, Ronny Gottschlich, MD of the German grocer's UK arm, said at the weekend.
The chain plans to step up the rate of store openings and increase the pressure it is putting on the "big four" - Tesco, Sainsbury's, Asda and Morrisons.
In an interview with The Sunday Telegraph, Gottschlich said Lidl expects to spend around GBP170m in the UK this year. Annual investment is likely to rise to GBP300m within two years as Lidl accelerates from opening 15 to 20 stores per year to at least 30 to 40 stores.
"There are no restrictions to the openings we can do in a year. The funding is there," he said.
The bulk of that spend will be on store openings, but the group is also planning to introduce in-store bakeries at its existing locations in order to increase its mainstream appeal.
Here in lies the key to Lidl's success in the UK. The retailer has gone from being viewed as a bargain basement outlet pedalling a random assortment of products shipped in from Europe to a supermarket operator with mainstream - albeit still value - appeal.
Lidl has adjusted its ranging strategy and increased its focus on fresh products, including significant investments in expanding its meat and poultry offering.
And it is that kind of investment that has helped Lidl grow its share of the UK market. It accounts for 3% of sales, low compared to the likes of Tesco and Asda, but its double-digit growth rate will be causing furrowed brows at its larger rivals.
Spanish retail groups Dia and Eroski have signed an agreement aimed at creating supply chain efficiencies in sourcing materials for their respective own-label products....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
To follow on from our earlier notice and after some hard work from our technical team, just-food is back live after today's power outage....
Much of the UK has felt the impact of Storm Doris today - and just-food's head office has been no exception....
- General Mills sales woes continue - analysis
- Why personalisation will take-off in US food
- Comment: Meal kits in US - don't believe the hype
- US food next wave on display at Winter Fancy Food
- Column: Kraft Heinz, Unilever and sustainability
- Unilever 'lining up spreads sale'
- UK own-label firm Park Cakes sold in MBO
- Kraft Heinz cuts jobs in US, Canada
- Immigration crackdown "risk" for US dairy industry
- BRF plant suspended amid bribery allegations