Lidl
Lidl (German pronunciation: [ˈliːdl̩] LEE-dəl) is a German international discount retailer chain[3] that operates over 12,000 stores, present in every member state of the European Union, Serbia, Switzerland, the United Kingdom and the United States.[4] Headquartered in Neckarsulm, Baden-Württemberg, the company belongs to the Schwarz Group, which also includes hypermarket chain Kaufland.
Headquarters in Bad Wimpfen | |
| Company type | Private |
|---|---|
| Industry | Retail |
| Founded | 1932 |
| Founder | Josef Schwarz |
| Headquarters | , |
Number of locations | 12,200 (2023)[1] |
Area served | European Union United Kingdom United States Switzerland Serbia |
Key people | Kenneth McGrath (CEO), Dieter Schwarz (Chairman) |
| Products | Discount supermarket |
| Revenue | €114.8 billion (2022) [2] |
Number of employees | 360,000 (2023) [1] |
| Parent | Schwarz Gruppe |
| Website | info.lidl |
Lidl is the chief competitor of the similar German discount chain Aldi in several markets.[5]
History edit
In 1932, Josef Schwarz became a partner in Südfrüchte Großhandlung Lidl & Co., a fruit wholesaler, and he developed the company into a general food wholesaler.[6][better source needed]
In 1977, under his son Dieter Schwarz, the Schwarz-Gruppe began to focus on discount markets, larger supermarkets, and cash and carry wholesale markets. Dieter did not want to use the name Schwarz-Markt (literally "black market") and wanted to use the name of his father's former business partner, A. Lidl, but legal reasons prevented him from using that name for his discount stores. When he discovered a newspaper article about a painter and retired schoolteacher Ludwig Lidl, he bought the rights to the name from him for 1,000 German marks.[7][8]
Lidl is part of the Schwarz Group, the fifth-largest retailer in the world with sales of €104.3 billion (2018).[9]
The first Lidl discount store was opened in 1973, copying the Aldi concept.[6] Schwarz rigorously removed merchandise that did not sell from the shelves, and cut costs by keeping the size of the retail outlets as small as possible. By 1977, the Lidl chain comprised 33 discount stores.
Lidl opened its first UK store in 1994.[10] Its grocery market share in the UK was 5.9% in 2019.[11]
Sven Seidel was appointed CEO of the company in March 2014, after the previous CEO Karl-Heinz Holland stepped down.[12] Holland had served as chief executive since 2008 but left due to undisclosed "unbridgeable" differences over future strategy. Seidel stepped down from his position in February 2017 after Manager Magazin reported he had fallen out of favour with Klaus Gehrig, who has headed the Schwarz Group since 2004. Seidel was succeeded as CEO by Dane Jesper Højer, previously head of Lidl's international buying operation.[13]
In June 2015, the company announced it would establish a United States headquarters in Arlington, Virginia.[14] Lidl has major distribution centers in Mebane, North Carolina, and Spotsylvania County, Virginia. The company initially focused on opening locations in East Coast states, between Pennsylvania and Georgia,[15] and as far west as Ohio.[16][17] In June 2017, Lidl opened its first stores in the United States in Virginia Beach, Virginia and other mid-Atlantic cities.[18] The company planned to open a total of one hundred U.S. stores by the summer of 2018.[5][18] In November 2018, Lidl announced plans to acquire 27 Best Market stores in New York and New Jersey.[19] In December 2018, Lidl opened its first location in New York City, in the Staten Island Mall. The company continued to expand throughout the eastern U.S., with over 100 stores by the end of 2020. In August 2020, Lidl announced that it planned to open up another 50 stores in the U.S. by the end of 2021.[20]
In April 2022, Lidl postponed its expansion in Ukraine due to the 2022 Russian invasion of Ukraine.[21]
In 2021, Lidl planned to phase out the selling of cigarettes in all its Dutch stores by 2024 as part of the 'smoke-free generation'.[22]
Corporate affairs edit
Business trends edit
The key trends for Lidl are (as of the financial year ending February 28[23]):
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|---|
| Revenue worldwide (€b) | 74.6 | 81.2 | 89.0 | 96.3 | 100.8 | 114.8 |
| Revenue in Germany (€b)[24] | 20.4 | 21.2 | 21.6 | 28.3 | 29.7 | 30.1 |
| Share of revenue abroad (%) | 73 | 74 | 76 | 71 | 71 | 74 |
| Number of employees in Germany (k)[25] | 145 | 160 | 178 | 193 | 211 | 223 |
| Number of stores in Germany[26] | 3,180 | 3,193 | 3,208 | 3,226 | 3,242 | 3,248 |
| References | [27] | [28] | [29] | [30] | [31] | [32] |
In the financial year 2022 Lidl made a profit of €1.64 billion, €500 million less than in the previous year.[23]
Business model edit
Currently active Planned expansion | Formerly active |
South Carolina, United States
This section needs additional citations for verification. (September 2015) |
Like fellow German supermarket Aldi, Lidl has a zero waste,[33] no-frills, "pass-the-savings-to-the-consumer" approach of displaying most products in their original delivery cartons, allowing the customers to take the product directly from the carton. When the carton is empty, it is simply replaced with a full one. Staffing is minimal.[34]
In contrast to Aldi, there are generally more branded products offered. Lidl distributes many low-priced gourmet foods by producing each of them in a single European Union country for its whole worldwide chain, but it also sources many local products from the country where the store is located. Like Aldi, Lidl has special weekly offers, and its stock of non-food items often changes with time. In contrast to Aldi, Lidl advertises extensively in its homeland of Germany.
Just as Aldi, Lidl does not play mood music in most countries, including Germany. Exceptions include stores in the United States, Ireland, Croatia, Spain (not all), Poland, Lithuania and Latvia. Additionally, in two stores in Denmark music is played as a test. Lidl stores have PA systems for important announcements but do not broadcast commercials.
The Lidl operation in the United Kingdom took a different approach than in Germany, with a focus on marketing and public relations, and providing employee benefits not required by law, including paying the independently verified living wage and offering a staff discount.[35] Upmarket products were introduced, especially in the lead-up to Christmas. This required significant investment in marketing to produce sales growth but had an effect on Lidl's logistical operation and pressure on profits. Ronny Gottschlich, who had run Lidl GB for the six years to 2016, was responsible for this approach, which led to friction with head office, due to the cost involved. In September 2016, Gottschlich unexpectedly left and was replaced by the Austrian sales and operations director, German-national Christian Härtnagel.[36] Lidl continued to have ambitious investment plans in the United Kingdom, ultimately doubling the number of stores to 1,500. In the financial year of 2015, Lidl Great Britain's revenue from its over 630 stores throughout Britain was £4.7 billion.
Stores edit
As of 2024[update], Lidl has a presence with stores in 31 countries.
| Country | Year opened | No. of stores | Ref. |
|---|---|---|---|
| Austria | 1998 | 255 | [37] |
| Belgium | 1995 | 310 | [38] |
| Bulgaria | 2010 | 125 | [39] |
| Croatia | 2006 | 109 | [40] |
| Cyprus | 2010 | 20 | [41] |
| Czech Republic | 2003 | 316 | [42] |
| Denmark | 2005 | 144 | [43] |
| Estonia | 2022 | 12 | [44] |
| Finland | 2002 | 202 | [45] |
| France | 1989 | 1,600 | [46] |
| Germany | 1973 | 3,250 | [47] |
| Greece | 1999 | 230 | [48] |
| Hungary | 2004 | 215 | [49] |
| Ireland | 2000 | 180 | [50] |
| Italy | 1992 | 730 | [51] |
| Latvia | 2021 | 29 | [52] |
| Lithuania | 2016 | 72 | [53] |
| Luxembourg | 2001 | 13 | [54] |
| Malta | 2008 | 10 | [55] |
| Netherlands | 1997 | 440 | [56] |
| Poland | 2002 | 900 | [57] |
| Portugal | 1995 | 273 | [58] |
| Romania | 2011 | 350 | [59] |
| Serbia | 2018 | 70 | [60] |
| Slovakia | 2004 | 164 | [61] |
| Slovenia | 2007 | 66 | [62] |
| Spain | 1994 | 670 | [63] |
| Sweden | 2003 | 205 | [64] |
| Switzerland | 2009 | 170 | [65] |
| United Kingdom | 1994 | 960 | [66] |
| United States | 2017 | 177 | [20] |
| Total | 12,256 | [67] |
Former markets edit
| Country | Year opened | Year closed | Notes | Ref. |
|---|---|---|---|---|
| Norway | 2004 | 2008 | Closed due to poor sales and political issues. | [68] |
Future markets edit
| Country | Opening year | Notes | Ref. |
|---|---|---|---|
| Bosnia and Herzegovina | 2024 | Under construction, first stores planned to open by 2024. A Lidl store in Bijeljina is already built, and in Sarajevo there is land being prepared for a second store. | [69] |
| North Macedonia | 2024 | Under construction, first stores planned to open by 2024. | [70] |
| Montenegro | 2024 | Under construction, first stores planned to open by 2024. | [71] |
Other services edit
In October 2009, Lidl Movies was launched in the United Kingdom,[72] undercutting Tesco DVD Rental, which had previously been the United Kingdom's cheapest online rental service for DVDs. The service was powered by OutNow DVD Rental. OutNow went into liquidation in October 2011, taking Lidl Movies with it.[73]
In January 2012, Lidl launched bakeries in their stores across Europe. They consist of a small baking area with a number of ovens, together with an area where bread and pastries, such as croissants, are displayed for sale. The bakeries were initially trialed in a limited number of stores, to determine whether there was a demand for freshly baked products in-store.[74]
The mobile phone brand Lidl Connect was launched in Germany in October 2015 and in Austria and Switzerland in June and July 2019.
As of May 2019, Lidl US has partnered with Boxed.com to test a home delivery service using the online retailer's technology. Lidl also partners with Target Corporation's subsidiary Shipt for grocery home delivery.[75]
Lidl also runs Representative Offices in China, Bangladesh, and Hong Kong, though there is no mention of Lidl stores opening in said countries. Their operations are likely limited to overseeing manufacturing contracts for most of non-food products, offered in Lidl stores, with local manufacturers based in these countries.
In April 2021, Lidl in Ireland started offering customers coupons to get free pads or tampons each month as an initiative against period poverty.[76]
In March 2023, Lidl was announced as the sponsor of the 2023 World Cycling Championship held in Scotland.[77]
In August 2018, Lidl introduced "Lidl Plus" supermarket loyalty card via an app on the Apple App Store and Google Play Store. The app is available in most European countries that Lidl operates in, offering discounts on own brand products and on partner offers. The app also has, in several countries, a bonus program with cashback.
Criticism edit
In 2008, Lidl was accused by journalists of spying on their workers, listening to private phone calls, and sometimes even following them home or to doctor's appointments.[78] In one instance, an employee's file was supposedly annotated to note that most of her friends were "drug users".[78] Lidl responded to these claims, stating that the surveillance was intended to prevent shoplifting, and to detect "abnormal behavior".[78]
Lidl has also been accused by trade unions in Germany of shutting down stores when workers elect worker councils or opt to engage in collective bargaining with a trade union.[79]
In October 2022, animal welfare NGOs across Europe accused Lidl of a ‘chicken scandal’. Investigation footage filmed on a Lidl supplier's farm in Germany showed sick and injured chickens unable to walk and lying in their own waste.[80] In November 2022, another investigation was published showing similar conditions at Lidl supplier farms in Spain.[81] Further investigations in Italy and Austria have also revealed severe chicken welfare issues. In the Austrian investigation footage, birds are seen attempting to eat the rotting carcasses of other dead chickens.[82] The chickens in the footage are fast-growing breeds, which reach their kill weight in just 35 days and have higher levels of mortality, lameness and muscle disease than slower-growing breeds.[83] NGOs have called on the supermarket to sign up to the Better Chicken Commitment (BCC), a set of welfare standards which prohibits the use of fast-growing breeds and requires the provision of more space and enrichment for chickens. While Lidl France already committed to the BCC in 2020, Lidl have so far not made a commitment for the rest of their European operations.[80]
References edit
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- ^ "German discounter Lidl slows U.S. expansion: paper". Reuters. 17 January 2018. Retrieved 17 January 2018.
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- ^ "Record turnover for Lidl owner: over 100 billion euros". RetailDetail. 13 May 2019.
- ^ "Lidl opens its 700th store in the UK". BBC News. 15 February 2018. Retrieved 24 August 2021.
- ^ "Lidl attains its biggest UK grocery market share at 5.9%". The Guardian. 20 August 2019. Retrieved 24 August 2021.
- ^ Ricadela, Aaron (21 March 2014). "German Grocer Lidl Names Replacement CEO After Holland Departure". Bloomberg Business. Retrieved 15 February 2017.
- ^ Thomasson, Emma (7 February 2017). "Lidl replaces CEO after less than three years". Retail Analysis. Retrieved 15 February 2017.
- ^ Vozzella, Laura (12 June 2015). "McAuliffe bags German grocer Lidl, bringing hundreds of jobs to Virginia". The Washington Post.
- ^ Thomasson, Emma. "German discounter Lidl starts hiring for U.S. stores launch". Reuters. Yahoo! News. 13 December 2016.
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- ^ "Lidl's US stores break European mold, says Bernstein: 'This is not a copy and paste approach'". foodnavigator-usa.com. Retrieved 3 January 2018.
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- ^ "Mitarbeiter von Lidl in Deutschland bis 2021/2022". Statista (in German). Retrieved 26 October 2023.
- ^ "Filialen von Lidl in Deutschland bis 2022". Statista (in German). Retrieved 26 October 2023.
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- ^ "Schwarz Gruppe | Aktuelle Zahlen 2021". gruppe.schwarz (in German). Retrieved 26 October 2023.
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- ^ Butler, Sarah (24 November 2016). "Lidl to give lowest-paid staff pay rise to £8.45 an hour". The Guardian. ISSN 0261-3077. Retrieved 19 September 2019.
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- ^ "Lidl came to Norway in 2004, lost in 2008! Lidl is no more!". Distrita. 11 February 2013.
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- ^ Фактор. "Лидл се отвара во Македонија" (in Macedonian). Retrieved 17 February 2021.
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- ^ Staff Writer (12 October 2012). "Lidl launches home baking range in time for National Baking Week". Talking Retail. Retrieved 13 March 2020.
- ^ "Boxed Partners With Grocery Chain Lidl: Exclusive". Forbes. 15 May 2019. Retrieved 17 May 2019.
- ^ Amy Woodyatt (20 April 2021). "Lidl Ireland becomes first major retailer to offer free period products". CNN. Retrieved 20 April 2021.
- ^ Williams, George (7 March 2023). "Lidl, sponsor of the 2023 Cycling World Cup in Scotland". Sports Finding. Retrieved 9 March 2023.
- ^ a b c "German supermarket chain Lidl accused of snooping on staff". the Guardian. 27 March 2008. Retrieved 20 June 2022.
- ^ Kelly, Debra (3 November 2017). "The Untold Truth Of Lidl". Mashed.com. Retrieved 20 June 2022.
- ^ a b Ellson, David Crossland, Berlin | Andrew. "Chickens 'left to die' at Lidl supplier in Germany". The Times. ISSN 0140-0460. Retrieved 26 October 2022.
{{cite news}}: CS1 maint: multiple names: authors list (link) - ^ Lidl Chicken Farm: Shocking Undercover Investigation, retrieved 17 November 2022
- ^ "Lidl's chicken scandal". www.lidlchickenscandal.com. Retrieved 13 December 2022.
- ^ "UK government faces court challenge over 'Frankenchickens'". the Guardian. 21 September 2022. Retrieved 26 October 2022.
External links edit
- Official website
- Official website