The British arm of German discount supermarket Lidl sunk to a 76 million pound ($95 million) loss in its last financial year, hit by cost rises across the board and as it hiked wages for staff affected by the UK's high level of inflation.
Lidl GB along with rival discounter Aldi UK are Britain's fastest growing grocers and their appeal has grown during Britain's cost-of-living crisis as shoppers have sought savings, attracting custom from traditional rivals.
For the 12 months to Feb. 28, 2023, Lidl GB said it welcomed an additional 1.5 million customers, driving revenues up 19% to 9.3 billion pounds, but the company swung to a 76 million pound pre-tax loss from the 41 million pounds of profit in the previous period.
Lidl GB, Britain's sixth largest supermarket with a market share of 7.6%, attributed the loss to investments made during the year, including opening over 50 new stores, and spending 50 million pounds on hourly wage increases.
Part of Germany's Schwarz retail group, Lidl GB has said in the past it is relaxed about low profitability because of its long-term outlook, and its statement said it had the full support of its parent company.
The discounters' performance has forced the traditional major players, including market leader Tesco (TSCO.L) and No. 2 Sainsbury's (SBRY.L), to compete more aggressively and they have accepted a profit hit to keep prices down.
($1 = 0.8003 pounds)
