German discount supermarket chain Lidl has seen significant growth in the UK in recent years. In 2021, Lidl was the fastest-growing supermarket in the UK, with sales increasing by 18.2% compared to the previous year. This growth has been driven by Lidl’s strategy of offering a wide range of products at low prices, as well as its expansion into new markets.
Lidl’s competitive pricing and multi award winning product ranges, helped the retailer attract more than 1.3m more customers in the run up to Christmas, with households switching to the discounter from more expensive traditional supermarkets.
The push was aided by a successful Christmas campaign featuring poker-face Lidl bear on its wild, rollercoaster ride of fame. Lidl Bear’s story begins when a dad accidentally shrinks his Lidl jumper in the wash, and his young daughter has the ingenious idea of putting it on her teddy bear.
In a bid to get most value from their money, shoppers switched £62.8m spend to Lidl GB – almost triple that of Christmas ‘21. This contributed to a rise of +24.5% in overall sales YoY and saw the retailer celebrate its busiest ever day of trading in 28 years on Friday 23rd December.
Ryan McDonnell, CEO at Lidl GB, said: “Every week of the year we are seeing more customers coming through our doors, switching spend to Lidl from the traditional supermarkets. We know they switch to us to make savings, but then they stay with us when they realise that they’re not having to compromise on quality, and this Christmas was no exception.
“Our strategy – great quality products at low prices – has remained the same since we first opened our doors over 28 years ago. But that is only because it’s as relevant now as it ever has been. It is working because we are seeing big switching gains with over £63m of spend moving to us in the four weeks to the 25th of December. We only see this momentum continuing in 2023.”
As people looked to get into the festive spirit, many turned to the discounter to decorate their homes, with sales of Christmas lights and decorations up 85% and 71% respectively. It was also the season for giving, with over 1.8 million rolls of wrapping paper sold, equating to over 6,000 miles – the distance from London to the North Pole and back again.
Lidl shoppers also showed their generosity through the supermarket’s initiatives supporting the wider community, with over 60,000 new and unopened toys and games being donated to families in need over Christmas through its Lidl Bear Toy Bank. Following its pledge to make its largest community food donation ever, the equivalent of 1 million meals were donated through surplus food donations. On Christmas Eve alone, the retailer donated approximately 150,000 meals to those in need.
McDonnell continued: “As we head into another new year, we’re laser focused on strengthening our infrastructure across the country. As we continue with the expansion of our distribution centres in Belvedere and Bridgend, we’re set to open our biggest ever warehouse in Luton later this year. This doubles down on our efforts of giving more communities access to our unrivalled quality-value combination, something that’s particularly important as families continue to tighten their belts in the current climate.”
In addition to its low prices, Lidl is also known for its commitment to sustainability. The company has invested in renewable energy sources and has a goal of becoming carbon neutral by 2030. Lidl has also implemented a number of initiatives to reduce food waste, including offering smaller portion sizes and partnering with organizations to donate excess food to those in need.
In the United States, Lidl has been expanding rapidly, with over 100 stores in the eastern part of the country. The company plans to continue its expansion in the coming years, with a goal of operating over 500 stores in the United States by the end of 2023.
