Lidl said its sales exceeded £1billion in the four weeks up to 24 December for the first time, as the discounter celebrated its most successful Christmas yet.
Lidl added that it increased its British supply base by 20 per cent this holiday season, stocking its shelves with locally-sourced festive favourites at the lowest prices. Over 16 million British pigs in blankets were sold, including new Deluxe flavours such as maple, cheese, and cranberry. British turkeys proved again to be the festive staple, with one sold every second, while three quarters of a roasting joints were enjoyed across the country.
Lidl Plus grew its user base by over a quarter year-on-year, with 75 per cent more customers taking advantage of its weekly discounts. In December, Lidl also brought festive cheer with its Advent Calendar campaign, which saw more than 1 million customers engage daily for surprises and promotions.
Lidl’s partnership with Neighbourly saw around 1.25 million meals being donated in December, while the supermarket provided £125,000 in festive grants to local charities, helping bring Christmas magic to those who needed it most. Additionally, Lidl’s nationwide Toy Bank scheme invited customers to donate toys to children who might otherwise go without, resulting in almost 100,000 toys being distributed as Christmas presents.
“For three decades, Lidl has been providing households with access to unbeatable quality and value at Christmas. This year, we were thrilled to welcome more customers than ever before. That’s a strong reflection of the trust our customers place in us and the dedication of our colleagues and suppliers, who work so hard to deliver an outstanding Christmas for the communities we serve,” Ryan McDonnell, chief executive at Lidl GB, said.
“In 2024, we continued to raise the bar with product innovation, especially within our Deluxe range, as well as supporting all the community initiatives that are deeply important to us. It’s all been about bringing people together and sharing the joy of Christmas.
“Looking ahead, we’re excited to build on our momentum, growing our presence across the country and continuing to deliver the highest quality at the best prices on the market.”
This update comes after Lidl revealed it experienced the highest growth in customer visits of any supermarket last year, as part of its FY23 results.
The Competition and Markets Authority (CMA) has identified 107 breaches of the Groceries Market Investigation (Controlled Land) Order 2010 by Co-op, raising serious concerns about the retailer’s compliance with competition regulations.
The breaches, detailed in an open letter published on Wednesday by the CMA, relate to land agreements that restricted competition by preventing rival supermarkets from opening nearby. The Order was introduced to prevent large grocery retailers from using such agreements to limit consumer choice and stifle market competition.
Following a previous case involving Tesco in 2020, the CMA had instructed all large grocery retailers, including Co-op, to review their compliance with the Order.
The CMA’s investigation into Co-op confirmed that 107 breaches had occurred since the Order came into force, with three still remaining unresolved at the time of the letter’s publication.
Despite the significant number of breaches, the CMA acknowledged that “Co-op has proactively taken steps to address the root causes of these breaches, has cooperated with the CMA to date and is now working with the CMA to take further remedial action to address the breaches identified.”
Additionally, the retailer will now provide annual compliance reports to the CMA to ensure future adherence to the regulations.
However, the CMA expressed strong concerns over the scale of the breaches, stating that they demonstrate “significant failures in compliance for a business of Co-op’s size, resources and standing,” particularly given that the Order has been in force since 2010.
The CMA now expects Co-op to promptly rectify the remaining breaches.
Since it launched its probe in 2020, the regulator has forced Waitrose to re-write anti-competitive land deals, secured agreements from Morrisons and Marks and Spencer to stop using such land agreements, and warned Sainsbury's and Asda over the use of these agreements.
Supermarket Asda has announced the joining of Jo Whitfield in its board of directors as a Non-executive Director to support its turnaround plans.
Whitfield previously spent eight years at Asda from 2008 onwards, holding a number of senior positions in operations, e-commerce, commercial, general merchandise and money & mobile.
She then joined the Co-op, where she was Chief Executive of Food for five years from 2017. Until last year, she was the CEO at Matalan, leading a business turnaround strategy.
Asda noted that given her breadth of experience in the convenience market from her time at the Co-op, she will have a particular focus on supporting the growth of the group’s Express c-store chain.
In recent weeks, Asda’s new Chairman, Allan Leighton, has made several changes to the struggling retailer’s management team to support his strategy to return the chain to its traditional focus on value.
He is also reported to have restarted the group’s search for a Chief Executive, having operated without a permanent leader since the abrupt departure of Roger Burnley in August 2021.
At the end of January, Asda announced that it was cutting prices on over 4,000 products as part of a move to re-establish its value credentials and win back shoppers after a slump in its market share over the past year.
Commenting on his latest appointment, Leighton said, “Jo is one of the UK’s most experienced retail leaders and has a deep knowledge of the food retail, convenience and fashion markets.
"She also understands Asda’s DNA and the role this business plays in delivering value for hard-working families. We are delighted to welcome her back to Asda.”
Whitfield, who will join Asda shortly, added, “Asda is one of the biggest names in retail and plays an important role in the daily lives of millions of customers and communities throughout the UK.
"It is a business that I have a strong affinity with and I look forward to working with Allan and the rest of the leadership team to help Asda get back on track.”
Morrisons has announced its trading update for the fourth quarter (Q4) and full year 2023/24, showcasing a robust performance marked by significant operational and financial improvements.
The supermarket chain reported its strongest quarterly like-for-like (LFL) sales growth in nearly four years, alongside a notable increase in underlying EBITDA and total revenue.
For the 52 weeks ending 27 October 2024, Morrisons achieved a 4.1 per cent increase in Group LFL sales, with Q4 LFL sales rising by 4.9 per cent - the highest quarterly growth since early 2021. Underlying EBITDA surged by 11.2 per cent to £835 million, while total revenue climbed 3.8 per cent to £15.3 billion for the full year. Q4 revenue also saw a strong uptick, increasing by 4.8 per cent to £3.8 billion.
“This has been a year of urgent reinvigoration and positive progress for Morrisons. Customer transactions increased, market share grew from Q2, and we saw positive switching from our competitors,” Rami Baitiéh, chief executive, said, adding that improvements in availability, pricing, promotions, and the loyalty scheme have driven the financial performance.
The Morrisons More Card has been a standout success, with linked sales growing to 68 per cent at the year-end and reaching 76 per cent by the time of the update. “The More Card is firmly established as a customer favourite after a stunning year,” Baitiéh noted, with 3.5 million Morrisons Fivers redeemed during the two-week Christmas period.
Morrisons expanded its convenience store estate to over 1,600 stores and acquired 36 convenience stores in the Channel Islands in November 2024.
Britain's biggest supermarket group Tesco plans to cut about 400 jobs from stores and its head office, seeking efficiency savings so it can invest in the business, it said on Wednesday.
The move follows that of Sainsbury's, the No. 2 player, which said last week it planned to reduce its headcount by over 3,000 roles.
British companies, and particularly large employers, are facing increased costs this year after the Labour government's first budget in October hiked National Insurance contributions for employers and the national minimum wage.
"We have started speaking to colleagues about a number of proposed changes in our stores and head office, including changing our bakery model in some stores, and updating our management structure in Tesco Mobile phone shops," Tesco said.
"Taken together, the changes we are proposing mean that around 400 roles will be removed."
Tesco said it would try and find alternative roles for impacted staff, noting it currently has 1,000 vacancies across the business.
(Reuters)
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People hold placards during a farmers protest outside the Oxford Farming Conference on January 9, 2025 in Oxford, England.
Lidl GB has voiced strong support for the British farming community, urging the government to pause and reconsider recent Inheritance Tax regime changes that could potentially impact agricultural investment.
The supermarket, which sources two-thirds of its products from British suppliers, highlighted its substantial commitment to the UK food industry. In the past year alone, Lidl has invested £1 billion in the egg industry, £1.5bn in beef, £500m in pork, and £70m in root vegetable suppliers.
By the end of the financial year, Lidl expects to have invested a total of £21bn in British food production, exceeding its original five-year commitment by 40 per cent. The company sources 100 per cent of its fresh beef, pork, poultry, milk, butter, cream, and eggs from British producers.
“Providing security and long-term investment for British agriculture is key to helping ensure that farmers can continue to produce affordable and increasingly sustainable food for generations to come,” Lidl said in a statement.
“We are concerned that the recent changes to the Inheritance Tax regime will impact farmer and grower confidence and hold back the investment needed to build a resilient, productive and sustainable British food system.
“We, therefore, support the call by the farming community to pause the implementation of those changes and to consult with industry to achieve a mutually beneficial outcome.”
Last year, prime minister Keir Starmer's Labour government announced that in order to find vital new revenue, some farms would no longer be exempt from inheritance tax, a long-standing measure designed to facilitate the family handover of farms.
From April 2026, the exemption will be capped at £1 million. Beyond that, a 20 per cent tax will apply, half the normal rate.
British farmers have been protesting the move, which they say threatens the agricultural sector and food production.
The government maintains the actual threshold before paying inheritance tax could be as much as £3m, once exemptions for each partner in a couple and for the farm property are taken into account.
British farmers have been struggling in recent years due to a lack of funding and post-Brexit labour shortages.
Farming businesses previously qualified for 100-percent relief on inheritance tax on agricultural and business property, reducing the amounts that farmers and landowners pay when farmland is bequeathed after a death.