Lidl invests £15bn in British suppliers
Lidl has announced a £15bn investment in its UK suppliers as it pledged to sell more British meat and fresh food.
The German discount supermarket announced the five-year investment today as it marked 25 years operating in the UK.
Read more: Lidl’s suppliers warned of EU tariff import costs
As part of the announcement, the retailer committed to increasing its sales of British meat, poultry and vegetables by more than 10 per cent over the next 12 months, following on from its decision to source all fresh poultry from British farms.
Ryan McDonnell, chief commercial officer at Lidl GB, said: “As our business continues to grow it’s vital that our suppliers remain at the heart of our growth plans, and that is why we are committing to investing at least £15bn over the next five years.
“Our business is only ever as good as our suppliers’, so our investments and commitments are key to ensuring that they can invest and expand with us.”
Other initiatives include signing long term contracts to provide certainty for suppliers and the introduction of a scheme to support young farmers.
The latest investment comes after the discounter in June committed to investing £500m in London over the next five years as it targets expansion across the capital.
Rival firm Aldi is also aiming to capitalise on the discounters’ relatively low market share in London by pursuing an aggressive expansion campaign.
Read more: Lidl plans 500 new jobs in Scotland
The grocers are shaking up the industry in the UK as they challenge the Big Four supermarkets – Sainsbury’s, Tesco, Morrisons and Asda – that dominate the sector.
Lidl currently has a market share of six per cent, and is planning to open between 50 and 60 new stores this year.
Main image credit: Getty