Discount Retail Chain Lidl Spain (owned by the German Schwarz Group) achieved a net sales in Spain of 6,08 billion euros in 2022, 18% more than the previous year, due to the evolution of inflation, but also due to the "organic growth" of its business, with the opening of new establishments and an "increase in both the number of customers and spending in stores".
As reported by the German chain, this increase in sales allows it to "underpin" its position as the third operator in the food distribution sector by market share.
The Corporate General Director of Lidl Spain, Ferran Figueras, pointed out that "in a complex year marked by multiple challenges that impact our operations, we have managed to maintain our path of sustainable growth in Spain by being faithful to our commitment to the Spanish customer and responding to their needs by putting at their disposal an assortment with the best value for money in the market".
"In 2023 we continue to focus our efforts to remain a benchmark in price containment and creation of shared value with Spanish society even in adverse conditions," he added.
Over the past year, Lidl invested more than 350 million euros to continue rolling out its sustainable expansion plan in the country. In this way, the company opened some 40 stores throughout Spain and promoted projects to expand its logistics infrastructures in the coming years, culminating the construction of its new logistics platform in Escúzar (Granada) and acquiring two new plots in Constantí (Tarragona) and Villadangos del Páramo (León).
Regarding the context of high inflation, the company stressed its work to "not fully transfer the increase associated with its operations in the final sale price of its items and thus facilitate the savings of Spanish families as much as possible".
Lidl explained that it has carried out a "permanent" price containment policy, keeping its products "below" the food CPI; An investment of 125 million euros additional offers and promotions and an absorption of cost overruns, which rose by 37% in the case of energy and 20% in transport, "at the expense of their own margins".
The CEO of Lidl Spain, Claus Grande, said that they have focused "on putting people as a priority with actions that shield the purchasing power of our employees and contribute to saving our customers even more, and we understand that only then will we be closer to our goal of being the first choice for all of them, whether as a company to work for or a supermarket chain where you can trust your shopping basket."
PERSPECTIVE
As for this year, Lidl said that it will increase the remuneration of its employees by 5%, as contemplated in the agreement, and has the prospect of creating around 1,000 new jobs. In addition, it will continue to act as a "price containment dam" to facilitate savings.
It also plans to "intensify its link" with the Spanish agri-food industry with more purchases and exports of national product and continue to deploy its expansion plan with an investment of about 230 million euros to add a score of new stores and further expand its logistics network.
Recently, Lidl has launched a warehouse in Escúzar (Granada) after allocating € 88 million and creating 250 new jobs and has started the works of its future logistics platform in Martorell (Barcelona), which is called to be its largest logistics investment in history in Spain, among others.
EMPLOYMENT AND PURCHASING
In 2022, Lidl created nearly 1,000 new direct jobs throughout the territory, which already allows it to have a workforce of about 18,500 people. Employees have increased more than 40% in just five years, after adding some 5,500 new jobs in total.
In addition, during the year, the III Collective Agreement 2022-2025 was signed, which includes a minimum wage increase of 18% for four years, which can reach up to 19% depending on the CPI. Likewise, a salary review clause of up to an additional 4% was incorporated for the first time once this agreement expires, which will also be based on the CPI.
On the other hand, Lidl executed record purchases worth about 6,7 billion euros, 17% more than in 2021, to more than 900 suppliers, exporting more than half, which also reaches a maximum, to more than 30 countries.
The company especially highlighted the purchases of fruit and vegetables of national origin, whose value marked a record last year after exceeding 2,7 billion euros, 9% more than in 2021. 80% of these purchases were exported.
Read more: Lidl managed to reach 2022,6 million in sales in Spain in 000, 18% more (lavanguardia.com)
