Lidl has achieved a new milestone in Spain, closing its latest fiscal year (i.e. from March 1, 2023, to February 29, 2024) with record net sales of 6,572 million euros. This achievement represents an 8% growth over the previous year, consolidating its position as the third operator in Spain's food distribution sector by market share.
In a period marked by inflation, Lidl has focused on ensuring its employees receive a higher salary and its customers save more. According to Claus Grande, CEO of Lidl Spain, the company has prioritized the needs of people, helping to counteract the effects of inflation through actions that protect the purchasing power of its workers and promote savings among its customers.
As part of its price containment strategy, Lidl helped its customers save 176 million euros in 2023, keeping the average selling price of its products below the food's average CPI for the year. In addition, the company has increased its wage bill by 22 million euros, 5% more than the previous year, which adds up to a total of 45 million euros in wage increases since the entry into force of its current collective agreement.
Despite a total profit of 182 million euros in Spain, which amounts to 2.76% of its net sales, Lidl has experienced a 5.7% decrease in absolute terms and a 13% fall in relative terms compared to 2022. This is due to the chain's decision to give up part of its profit to maintain its commitment to offer its customers the best value-for-money deals.
As part of its sustainable expansion plan, Lidl has invested more than 260 million euros in opening about twenty stores and in projects to expand its network of warehouses. The company has also stood out for its support for the sustainable development of the Spanish agri-food industry, with record purchases worth more than 7,400 million euros from about 900 suppliers in 2023, exporting more than half of these purchases to some thirty countries.
In 2024, Lidl will focus on increasing the salaries of its employees by 3.5% and creating more than 200 new jobs. It will also apply more permanent price reductions for its customers. The company plans to invest approximately 220 million euros to open an additional 40 stores and expand its logistics infrastructure, thus continuing its commitment to sustainability and digitalization.
Source: revistainforetail.com