Lidl has swung into an annual loss as the discount supermarket chain tried to keep prices low as food inflation has been on the rise.
In the year to 28 February Lidl reported pre-tax losses of £76 million compared to profits of £41.1 million the year before as the retailer has invested in their stores.
Sales soared 18.8% to £9.3 billion over the year as the discount retailer increased the share of the supermarket sector, however bosses said that they have faced “challenging inflationary environment which led to an increase in costs across the board.”
Lidl has “held firm on its promise” to keep prices low for their loyal customers as the retailer spent £100 million on prices and they have increased wages for their workers to the tune of £50 million.
Ryan McDonnell, chief executive of Lidl’s British business, said, “The entire retail market has seen inflation, and we are no exception.
“However, for us, what is important is that our price gap to the traditional supermarkets is as strong as it has ever been.
“We’ve invested in keeping our prices low for customers in what has been a very challenging year for most.”
McDonnell continued, “We’ve always had a clear commitment to offer the best value to our customers and that is a promise we will always keep, even in uncertain economic times.”
He added,“Next year will mark 30 years of Lidl in Great Britain, and there is no ceiling on our ambitions for the next 30 as we see the potential for hundreds of new stores across Great Britain.”