Mixed picture for Lidl: international expansion, but online drop

German discounter Lidl achieved yet another sharp rise in sales last year, largely thanks to many openings in international markets. However, the chain had to admit to a drop in online sales, leading the discounter to update its omnichannel and non-food strategy.

Online sales down

Lidl sales rose 5.3 % to 132.1 billion euros in the financial year that ended on 28 February. The retailer’s international operations now account for 80 % of its sales, while the company has crossed the milestone of thirty billion euros in sales in its German home market, Lebensmittel Zeitung reports.

The international growth comes courtesy of the opening of hundreds of additional shops, especially in Italy, Spain, Switzerland and the United Kingdom. The discounter also plans to accelerate in Belgium, with eighty new shops planned by the end of 2038. In the United States, however, expansion is proceeding more slowly.

Online shows another picture: Lidl saw its e-commerce sales drop. An updated omnichannel strategy should bring relief, with a renewed focus on DIY brand Parkside and sports brand Crivit – for which the retailer is now launching a large-scale campaign in thirty countries. Non-food is no longer a mere in/out promotional item for Lidl, but a regular part of the offer, at fixed prices.