Spain: Lidl increases its impact on GDP by 13% in 2020, with sales of US$7.4Bn

Updated: Aug 18

Discount Retail Chain Lidl Spain (owned by the German Schwarz Group) makes a firm commitment to local products and producers, revitalization of the labor market and opening of new stores: this is how Lidl consolidates its commitment to the economic development of the Community of Madrid, as It follows from the Impact Report of Lidl in Spain in 2020, prepared by the independent consultant PwC to analyze the economic and social impact of the chain in our country.


During fiscal year 2020, the company continued to increase its global contribution to regional GDP, contributing 13% more than in 2019 (going from 575 million euros in 2019 to 650 million in 2020). According to the PwC report, these results represented 0.33% of the total GDP of the Community, thus improving the figure for 2019 (0.27%). Lidl's direct impact on Madrid's GDP in 2020 was 83.5 million euros, but, thanks to its activity, it generated another 566 million indirectly and induced.

More employment in Madrid Likewise, as reflected in the PwC report, Lidl's economic activity also implied a 14% growth in total employment generated in the region, after exceeding 14,200 direct, indirect and induced jobs during fiscal year 2020 , a figure that already represents 0.47% of the regional total. At the end of said financial year, the chain had a workforce of more than 2,200 workers. However, its activity in the region (especially the opening of new stores and the purchase of local products) generated, indirectly and induced, another 12,000 jobs. In this way, Lidl exerts a very significant multiplier effect on the Madrid labor market: for each direct job it creates, it generates more than 5 additional ones.

Lidl's commitment to local suppliers and expansion Lidl's commitment to local suppliers plays a very relevant role in explaining the positive impact that its activity has in the region. The company is committed to proximity and in 2020 intensified its support for the promotion of strategic sectors for the Community economy.

The chain works continuously with some 90 local producers and in 2020 increased its purchases in the region by 25%, reaching 350 million euros (US$ 400 million) (280 million in 2019). Another key factor to understand Lidl's positive impact on the economy and the labor market is its ambitious expansion plan in the Community, generating wealth and employment directly, indirectly and induced. In the 2020 financial year, the company opened eight new stores and plans to launch some 50 more in the 2021-2024 period, after investing some 200 million euros (US$230 million).

National data At the national level, the chain has generated with its activity in fiscal year 2020 nearly 140,000 jobs between direct, indirect and induced (0.72% of the total in Spain) and an impact on GDP of more than 6.5 billion euros (US$7.4 bn, 0.64% of the country's total).


See here for more: https://www.compromisorse.com/rse/2022/01/26/lidl-incrementa-un-13-su-impacto-en-el-pib-en-2020/



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