Lidl Spain has reported an 8% year-on-year increase in net sales, to €6.6 billion, in its 2023 financial year.
The discounter also consolidated its position in Spain as the third largest grocer in terms of market share, it noted.
Lidl generated a profit of €182 million in Spain in full-year 2023, representing 2.76% of its net sales.
However, this profit is €11 million less than the previous year in absolute terms.
In relative terms, profitability decreased by 13% compared to 2022 as the supermarket chain channeled part of its profit to ensuring a better quality-price ratio for its customers.
'Exceed Customer Expectations'
General manager of Lidl Spain, Claus Grande, stated, “As a major company in the food distribution sector, we have not only the duty but also the responsibility to be completely receptive to the concerns of Spanish citizens and to work persistently to find solutions that can meet and even exceed their expectations.
“In 2023, we once again helped to address the effects of inflation within our scope of action, prioritising people with actions that protect the purchasing power of our employees and enhance the savings capacity of our customers.”
Annual Highlights
In 2023, Lidl Spain added more than 150 people to its workforce and focused on increasing the number of hours in contracts with more part-time work – those with less than 25 hours a week – to provide greater stability for its store and warehouse workers.
The company has also moved 96% of its workforce in Spain to a permanent contract.
In 2023, the company increased its payroll by about €22 million after raising employee remuneration by 5%.
Elsewhere, the company purchased Spanish agri-food products worth more than €7.4 billion, or 11% more than in 2022, from around 900 suppliers. It exported more than half of these, or around €3.9 billion worth, to some 30 countries.
In addition, the company purchased Spanish fruit and vegetables worth more than €3.1 billion, registering a year-on-year increase of 4%.
Lidl invested €260 million during the year in opening around twenty stores across Spain.
Outlook 2024
Lidl Spain plans to increase salaries by 3.5% and create over 200 new jobs during the current year.
It will also focus on more permanent price reduction campaigns, in order to help customers save while buying groceries.
Lidl plans to invest around €220 million in launching 40 new stores across 14 different regions, including Andalusia, the Community of Madrid, and the Community of Valencia.
