Business

Sales soar 24 per cent as Lidl posts five-fold profits increase

Announcing strong full year results and exponential growth for Lidl Northern Ireland are the retailer's Ireland chief executive J.P. Scally and Northern Ireland regional director Conor Boyle
Announcing strong full year results and exponential growth for Lidl Northern Ireland are the retailer's Ireland chief executive J.P. Scally and Northern Ireland regional director Conor Boyle Announcing strong full year results and exponential growth for Lidl Northern Ireland are the retailer's Ireland chief executive J.P. Scally and Northern Ireland regional director Conor Boyle

THE region's fastest-growing retailer Lidl enjoyed record-breaking "Covid-year" sales in Northern Ireland as it posted a five-fold surge in bottom-line profits.

Its financial returns for the period from March 2020 to February this year showed that Lidl's turnover soared by almost a quarter from £278.2 million to £345.4 million.

And profit after tax soared from £1.1m to £5.5m as Lidl - which has more than 1,000 employees at 41 stores and a regional distribution centre in Northern Ireland - continues to grow market share and invest in its stores and suppliers network.

“This was an impressive trading performance,” said J.P. Scally, chief executive of Lidl in both the Republic and Northern Ireland.

“This substantial year-on-year sales growth is testament to our established business model, which continues to deliver for us and for our more than 300,000 weekly customers across the region.

“Despite the unprecedented challenges, we’ve held our position as Northern Ireland’s fastest-growing supermarket, and we’re focused now on growing that even further.”

In the last year Lidl confirmed a £32 million investment in Greater Belfast in new stores at Crumlin Road, Boucher Road and Holywood Exchange, as well as revitalising premises at Castlereagh Road and Shore Road.

It also announced a further £26 million investment into the north west including opening a new store in Buncrana Road in Derry and progressing plans for additional nearby stores in Crescent Link and Strabane.

“These modern ‘concept’ store designs prioritise space and sustainability and offer our growing customer base a more comfortable shopping experience,” Mr Scally added.

“We’re now well placed to deliver on our ambition of 50 stores by the end of this decade.”

Lidl, which earlier this month became the first supermarket in the north to confirm an above-industry hourly pay rate of £10.10, grew its network of Northern Ireland suppliers to over50, from whom it sources £300m worth of goods annually.

Overall, it contributes £180m a year to the north's economy, sustaining 3,500 jobs, while buying and exporting as much as £290m worth of local goods and products.

Mr Scally said: “That's a robust and agile local supply chain which we’ve worked hard to develop over two decades. Our approach to sourcing locally has helped to shield us from some of the supply issues other retailers have faced as we haven’t been as reliant on imports.”

Lidl says it plans to continue to invest in the local agri-food industry through its dedicated Kick Start Supplier Development Programme which supports producers and open up export opportunities.

The retailer also launched its Lidl Plus rewards programme earlier this year, offering shoppers further savings at the till point.