Discount supermarket Lidl GB made 13.6 million stg loss in 2019-20

LONDON (Reuters) – The British arm of German discount supermarket Lidl on Thursday reported an after tax loss of 13.6 million pounds ($18.6 million) for its 2019-20 year, which it said reflected investment in staff, stores, logistics and its supply chain.

Lidl GB said it invested 654 million pounds in assets in the year to Feb. 29 2020, including 51 new stores and a new distribution centre in Scotland.

It said revenue totalled 6.9 billion pounds as it attracted a record number of shoppers.

The accounts are the first to be published following the reorganisation of Lidl’s UK registered entities.

Britain’s food retailing sector has been transformed in the last decade by the rise of Lidl and fellow German owned discounter Aldi which has driven down the returns of the big four players – market leader Tesco, Sainsbury’s, Morrisons and Asda.

Earlier this month Lidl GB reported buoyant Christmas trading, with sales up 17.9% in the four weeks to Dec. 27.

It has thrived during the COVID-19 pandemic despite not having an online offer.

The group, which has a UK grocery market share of about 6%, has committed to investing 1.3 billion pounds over 2021 and 2022. It is targeting 1,000 stores in Britain by the end of 2023.

“We are confident in our strategy and see huge potential in the market long-term,” said CEO Christian Härtnagel.

($1 = 0.7320 pounds)

(Reporting by James Davey; editing by Costas Pitas and Paul Sandle)