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Sweden: Lidl really picks up speed

Discount Retail Chain Lidl (owned by the German Schwarz Gruppe) recruited by far the most shoppers during this autumn. But average receipts and loyalty also rose sharply, again. "We are making a fantastic journey," says country manager Johan Augustsson.

Grocery news, in collaboration with the research company GFK, reveals that Lidl advanced its position most in the grocery trade also in August-October. GFK's index is based on a nationally representative panel with just over 4,000 private households that scans all purchases of groceries.

All key figures pointed strongly upwards:

- Lidl has long been in a positive spiral and this three-month period showed another message of strength, says GFK's analyst Bo Engström to Dagligvarunytt. The customer base grew by 15% compared with the corresponding quarter in 2019 and 43% of households in Sweden bought groceries from Lidl at least once. The distance up to Ica Supermarket, with a marketshare of 45%, was thus only two percentage points.

- In the past year, Lidl has expanded its store network by just over ten stores, which means that availability has increased a lot. The average receipts rose August-October by 13% to SEK 190 (US$22.36) and it is now higher than for the service formats of Coop, Hemköp, Tempo and Willys Hemma. The survey shows that loyalty improved by 14% and a Lidl customer now spends 15% of his grocery expenses with the chain.

- Lidl's stronger key figures are also due to the much wider range than before. It is an important factor in getting bigger baskets and driving loyalty among households. If you do not have a relevant range, the customer instead makes the purchases in another store, says Engström. Johan Augustsson confirms the continued impressive trend for Grocery News.

- We have fought hard for many years and have really picked up speed on the way to our long-term goals. We are very pleased that our sales development remains strong. It is gratifying to see that we continue to increase on all fronts, that we win over customers who have previously shopped at our competitors, that shoppers shop more in our stores and that loyalty increases. This is in line with our objectives.

In November, Lidl reached the milestone of 200 stores in Sweden by opening in Sigtuna north of Stockholm. Since then, three more stores have been opened, in Järfälla, Luleå and Uddevalla. We now continue to invest going forward. Our employees are well deserved for our success, says Johan Augustsson.

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