Germany: Record year for Lidl

Discount Retail Chain Lidl Foundation has achieved the highest profit in its history. Despite ongoing economic challenges and intense competition, Lidl has not only maintained but expanded its position in global food retail. The significance of this achievement lies not just in the numbers, but in how it was accomplished. In an era of high inflation, shifting consumer habits, and rising costs for energy, logistics, and personnel, Lidl demonstrates that consistent process optimization, data-driven management, and investments in sustainability yield long-term benefits. While many competitors are hoping for recovery, Lidl provides strong key figures, proving that the discounter model is far from obsolete. On the contrary, it is evolving, becoming more digital, efficient, and global.

Strategic focus and operational excellence as success factors

Examining the figures reveals how closely strategy and operational execution are linked at Lidl. A relentless focus on price leadership, along with clearly defined quality and sustainability goals, achieves a rare balance between profitability and responsibility. The 2024/25 period saw significant investments in logistics and IT infrastructure. Modern distribution centers, automated warehouse processes, and AI-powered demand planning systems have boosted efficiency across nearly every market. Simultaneously, increasing digitalization in purchasing and store management enhances transparency and responsiveness.

Another key to success is the international coordination within the Schwarz Group. Synergies between Lidl and Kaufland, particularly in procurement and sustainability, are increasingly effective. While Lidl continues to rely on standardized processes and scalable structures, there is ample room for local adaptations, a crucial advantage in the diverse European market. Progress is also evident in the product range: more own brands, a clear sustainability strategy, and strengthened regional supply chains have enhanced the brand image and boosted customer loyalty. Thus, Lidl has managed to combine profitability with growing brand trust, a feat few discounters achieve. A uniform pricing strategy ensures that Lidl customers from north to south encounter the same prices in the basic range.

Lidl sends a signal to the industry: Growth through change

The record profit of the Lidl Foundation in the 2024/25 financial year, exceeding €2.3 billion with a profitability of around 2.4%, is more than just a financial triumph, it is a strategic declaration.

Lidl illustrates that classic discounting is no longer merely a low-price business, but a dynamic, data-driven system combining efficiency and innovation. Especially in a time when margin pressure and consumer caution challenge many retailers, Lidl capitalizes on the strength of its processes. The company leverages modern technologies to make decisions faster, more accurately, and more sustainably. Meanwhile, the core philosophy remains unchanged: high quality at the best price, as the slogan states: Lidl is worth it...

For the industry, this result serves as both a wake-up call and an inspiration. It demonstrates that size and agility are not mutually exclusive, and that strategic discipline paired with technological advancement are the key success factors in modern retail. With the record year 2024/25, the Lidl Foundation cements its position as a benchmark in international discounting. The group convincingly shows that efficiency, innovation, and responsibility can coexist, and that even in the fiercely competitive food retail sector, growth through change is still achievable.

Thus, the necessary discounter is already well-prepared to expand into more countries worldwide in the near future. There is also sufficient liquidity to intensify efforts in still-developing markets like the USA. We eagerly anticipate how the Swabian Express will continue to evolve in the coming years and what long-term role the little sister Kaufland will play in the business.

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