Lidl GB Set to Surpass Morrisons as Leading UK Grocer

Lidl GB plans to accelerate store openings, aiming to surpass Morrisons as the UK's fifth-largest grocer. CEO Ryan McDonnell announced the expansion following a surge in annual profit, as the chain reported significant revenue growth. Lidl's rapid expansion continues to challenge major rivals in the supermarket sector.

Lidl GB, the British branch of the German discount supermarket chain, is set to fast-track new store openings in a strategic bid to capture market share from bigger competitors, as it revealed nearly a fourfold increase in annual profit. Currently the sixth-largest grocery retailer in Britain, Lidl GB is on course to overtake Morrisons for the fifth spot.

According to CEO Ryan McDonnell, the chain sees potential for "hundreds more stores" across the UK. After opening 12 new outlets in the business year ending February 2025, Lidl plans to launch 40 more stores in 2025/26, celebrating its 1,000th store opening next month. McDonnell emphasized that the target of 40 stores sets a benchmark for upcoming years, although he refrained from specifying a maximum limit for Lidl's expansion goals. Rival Aldi has a target of 1,500 UK stores.

Over the past two decades, Lidl GB, owned by Germany's Schwarz Group, and Aldi have expanded swiftly, reshaping Britain's supermarket landscape and prompting market leaders like Tesco and Sainsbury's to focus on competitive pricing. Lidl GB's pretax profit soared to £156.8 million in the year ending February 2025, up from £43.6 million in 2023/24, driven by a revenue increase to £11.7 billion. It welcomed 38 million more customer visits compared to the previous year and invested nearly £500 million in infrastructure improvements. Industry data highlights Lidl's sales growth at 10.8% over the 12 weeks leading to October 5, maintaining its status as Britain's fastest-growing physical supermarket.

McDonnell expressed optimism regarding the UK government's forthcoming budget, urging caution against additional inflationary pressures following last year's tax increases.

(With inputs from agencies.)