Lidl has cemented its position as Britain’s fifth-largest grocery chain after annual sales climbed by more than 10 per cent to over £13 billion, according to the Guardian. The German-owned discounter has now overtaken Morrisons in market share, capitalising on shoppers’ hunt for value amid persistent food price inflation.
Pre-tax profit at Lidl GB grew by 30 per cent to £245.5 million in the year ending February, up from £156.8 million the previous year. The retailer invested £315 million in price reductions and promotional campaigns, including its popular “pick of the week” offers.
Ryan McDonnell, chief executive of Lidl GB, said the company’s Deluxe upmarket range had performed particularly well, with sales climbing 12 per cent. “Deluxe sales are up 12% as more households dine in rather than eat out,” he stated. “Customers are looking to trade up and treat themselves at home.”
Discounters gain ground as food inflation persists
Shoppers have increasingly turned to discount retailers as food prices continue to rise. In-store inflation reached an annual rate of 1.5 per cent in August, up from 0.9 per cent in July, according to the Guardian. Fresh produce prices remained particularly elevated at 3 per cent.
Market data from Worldpanel by Numerator shows Lidl held an 8.6 per cent share of the grocery market in the 12 weeks to 17 May, compared with 8.3 per cent for Morrisons. The latter’s sales grew by just 1.3 per cent over the same period.
Both Lidl and rival discounter Aldi have benefited from weaker performances at Asda and Morrisons following their debt-heavy private equity acquisitions. However, Aldi’s growth has recently slowed as Tesco and Sainsbury’s have stepped up competition through loyalty schemes and price-match ranges.
Loyalty scheme drives customer engagement
Lidl’s own loyalty programme, Lidl Plus, saw a 23 per cent increase in membership during the year. Clive Black, vice-chair at broker Shore Capital, noted this contrasted with Aldi, “where management has a clear strategy to deride such programmes”. Aldi remains the only major UK supermarket without a loyalty scheme.
Earlier this month Giles Hurley, boss of Aldi UK, criticised some competitors’ loyalty discounts, telling BBC News they could “dupe customers” by starting with inflated prices before applying reductions. He said discounts were useful “when they’re real and when they show realistic reductions”.
The UK’s competition watchdog investigated loyalty pricing in 2024 and concluded that shoppers “almost always make a genuine saving” through such schemes.
What this means for Poles in the UK
Lidl’s expansion and aggressive pricing strategy offer Polish residents in Britain more options for affordable grocery shopping at a time when food costs remain elevated. The 10 per cent sales jump reflects broader shifts in how households manage budgets, with many switching from traditional supermarkets to discounters to stretch their income further.
For Polish families used to shopping at Lidl in Poland, the UK stores offer familiar own-brand products alongside the growing Deluxe range. The 12 per cent rise in Deluxe sales suggests more households are choosing to cook restaurant-quality meals at home rather than eating out—a trend that can help manage monthly spending without sacrificing variety.
The Lidl Plus loyalty app is free to download and offers weekly coupons and personalised discounts. With food inflation still running at 1.5 per cent overall and 3 per cent for fresh produce, comparing prices across Lidl, Aldi, Tesco and Sainsbury’s remains the most effective way to reduce the weekly shop bill. Lidl’s £315 million investment in price cuts means regular shoppers can expect continued competitive pricing on staples such as fresh meat, fruit and vegetables.
