Lidl hits 1,000 UK stores as expansion plans unfold

Lidl UK opened its 1,000th store in East Grinstead, Sussex, on opening day, as the discounter outlined plans to press on with growth and expand its British sourcing. The milestone comes as shoppers brace for the Christmas season amid a cost-of-living squeeze. "The excitement of a new store never wears off," Lidl UK chief executive Ryan McDonnell said as customers streamed in despite a cold drizzle.

Since launching its first UK store about three decades ago, Lidl has grown rapidly and is the fastest-growing bricks-and-mortar retailer in Britain for more than two years. Owned by Schwarz Group, the privately held German giant, Lidl reported profits more than tripled to £156.8 million in the year to February. McDonnell said 25 more stores are planned to open by February next year, and he added that expansion could continue beyond that: "It's hard to put a number on it. We'll open as many stores as the market allows. Every county, town and city probably has space for at least one more Lidl. We are nowhere near saturation."

The stores follow a template designed for efficiency and to push healthier eating, with fresh fruit and veg at the entrance and a bakery nearby. McDonnell notes the chain is adding variety: "We've worked really hard on adding more lines to make it more British, more relevant." The winter assortment includes 150 new seasonal lines, including Deluxe Violet Creams at £1.99 for 90 g and a Dubai Chocolate Flavour Cream Liqueur at £8.99 for 50 cl. Lidl says it can supply Christmas dinner for eight, turkey included, for £11.85. McDonnell and his wife plan to shop in-store for festive foods as well. Champagne is advertised at £9.99 through December; the bottles have been flying off shelves, with replenishment expected this week. The Winter Wonderland Cheesecake, a personal favourite cited by McDonnell, is £9.99.

Lidl published its first socio-economic impact report, detailing the chain's footprint in Britain: 35,000 employees, £14.5 billion of economic value created this year, and nearly £700 million paid directly in taxes. Investment in stores and distribution centres reached nearly £500 million, making Lidl one of the largest overseas investors in Britain. McDonnell said expansion is positive for the economy and for suppliers because higher sales translate into more British food being bought and sold.

As a privately owned company, Lidl does not publish accounts in the same way as a listed business. The new report is meant to enhance transparency about its community impact. "We’re a big employer and we want to show that we are growing responsibly," McDonnell said. He noted that around two-thirds of Lidl’s products come from British suppliers and pledged to invest £30 billion into British food and farming over the next five years. He cautioned that tax and National Insurance changes announced in the Budget would cost Lidl tens of millions of pounds.

McDonnell, 48, grew up in Dublin and is the first non-German to run Lidl UK. He studied German and business at University College Dublin and has spent most of his career with Lidl, including time in Germany and Austria. He took over as chief executive in 2022. Asked about the relationship between the UK arm and the global business, he said: "A lot of systems, structures and planning around infrastructure, finance and investment run through our main organisation. But in the UK we curate our range locally. We're a British retailer, a British discounter." He added that being part of an international network helps in offering value and also in exporting large volumes of British produce—such as whisky, salmon and cheese—to about 30 markets.

McDonnell declined to comment on the Budget’s broader economic implications, saying only that there will always be headwinds. "Our business model is built to be efficient and to manage costs," he said. "Everybody comes to Lidl." Officials note the retailer remains optimistic about years of expansion ahead in Britain.