Lidl in trouble after new investments

 

Last year, Lidl, the UK supermarket company, opened new stores and made considerable sales. Nonetheless, it found itself losing an amount worth £25m.

The firm has 800 outlets operating in England, Wales and Scotland. It advances that this loss is a result of additional investments. Indeed, the company disbursed £654m in 51 stores, the extension of 13 more sites and the opening of a new distribution centre in Motherwell, Scotland.

However, despite that, Lidl will keep making more investments. According to its plans, it will spend £1.3bn this year and the next on the opening of 50 more outlets. Additionally, it is going to shift to a new British headquarters in Tolworth, south-west London, and build another warehouse in Luton. Banking on innovation, it will install 300 electric car charging points in its car parks by 2022. There is also the project of installing solar panels on new freehold stores.

Nonetheless, unlike a lot of other supermarkets, Lidl is not going to invest in home delivery, despite the growth in demand for online grocery ordering during the lockdown. This is because, as advanced by Christian Härtnagel, the firm’s the chief executive, he thinks that families will not continue to buy as much online once fear of the virus has subsided.

 Lidl invested in 51 new stores © Royalty-free image


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