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Lidl has revealed a three-fold rise in profits as more shoppers turn away from its supermarket rivals amid rising costs of living.
It comes as the bosses of the German discount chain said they plan to open more stores as it pushes ahead with ambitious expansion plans across the UK.
On Wednesday, Lidl GB revealed that sales in the year to February 28 rose 7.9% from a year earlier to £11.7bn.
It said pre-tax profit tripled to £156.8 million from £43.6 million a year earlier, driven by sales growth and significant store investment.
The company was the UK’s fastest growing supermarket chain this year as it benefited from strong customer demand and new stores.
According to Worldpanel experts, it is currently the UK’s sixth largest grocery chain, after taking record share in the sector in recent months.
Lidl is expected to overtake rivals morrisonWhich is currently ranked fifth, if its current pace continues, in the coming months.
The retailer said it was encouraged by 38 million more customer visits over the year, as many shoppers turned away from supermarket rivals.
Ryan McDonnell, chief executive of Lidl GB, told the PA news agency that he had seen shoppers turning to Lidl from many competitors.
“Our gains from customers switching supermarkets are balanced compared to all our competitors,” he said.
“We have focused on providing low prices and high quality, and this has been really well received by buyers.”
Lidl has also welcomed more shoppers on the back of new store openings, with the retailer expecting to open around 40 shops by the end of this year.
It said as a result it is on track to surpass 1,000 stores and expects to continue opening new locations at the same pace.
Mr McDonnell told PA: “A run rate of around 40 per year is what we’ve had in the last few years as well.
“I’m confident we can open stores somewhere around that level again because there are hundreds of opportunities for us to open shops across the country.”