Lidl keeps up pace with store openings to overtake upmarket rivals

Lidl is set to open 19 new stores in the first two months of 2018, creating 700 new jobs across the country, as the German-owned discounter looks to overtake Waitrose as the UK's seventh largest grocer.

On Thursday, five new stores were officially opened, in Edinburgh, Stockton, Hull, Polegate and Rosehill in South London, lifting Lidl’s total in the UK to 700. The German supermarket group further plans to open 50 more shops in Britain in 2018, as well as regenerating 30 existing ones as part of a £1.45bn expansion plan that stretches through 2017 and 2018.

Recent industry data from Kantar Worldpanel showed that Lidl remained the UK’s fastest-growing grocer, with sales increasing 16.3% in the 12 weeks to 28 January, expanding its market share 0.5 percentage points to 5.0%. Currently eighth largest supermarket in the country, Lidl's could soon overtake Waitrose's 5.2% to become the seventh largest retailer in the sector with sixth-placed Co-op's 5.8% also in its sights.

Kantar said that while Lidl has traditionally focused on own-label lines, its fastest growth has recently come from branded products, which now account for 12% of all sales.

Lidl announced its five new openings shortly after news emerged that Tesco has hired consultants to look into a possible launch of a discount grocery chain to try and take back some ground from Lidl and fellow fast-growing German-owned rival Aldi.

As part of Lidl's expansion plans, it is building a major new regional distribution centre in Luton and has five new warehouses already in the pipeline.

Ingo Fischer, Lidl UK board director for expansion and development, said, “As the UK’s fastest growing supermarket, surpassing 700 stores is yet further proof of our ambitious rate of expansion across Britain.

“It’s great that more people than ever before have access to our high quality, fresh and locally sourced products at incredible value, and that as a result, we’re able to create more jobs for local communities up and down the country.”

Lidl experienced a 16% sales growth in 2017 and it shows no sign of stopping. The latest Kantar Worldpanel results have outlined sales growth of 16.3% year on year and a market share of 5%.