Lidl is preparing to enter the mobile phone market in a bold diversification push, as the discount retailer looks to expand beyond groceries and deepen customer engagement across Europe and beyond.
The supermarket giant, owned by Schwarz Group, is planning to launch mobile services in several markets later this year, initially focusing on its core territories of Germany, Austria and Switzerland.
However, further expansion into the United Kingdom, France, Spain and the United States is understood to be under consideration.
The rollout will be delivered through Lidl Plus, the retailer’s app-based loyalty scheme, which boasts more than 100 million users globally. Schwarz Group has partnered with 1GLOBAL to support the launch, marking a significant step into digital services.
Under the agreement, Lidl will operate as a mobile virtual network operator (MVNO), allowing it to offer telecom services without building its own infrastructure by instead relying on existing networks. The move mirrors a broader trend of non-traditional entrants seeking to tap into telecoms to strengthen customer loyalty and unlock new revenue streams.
Fintech challengers including Revolut, Klarna and N26 have already explored similar territory, while Monzo was reported last year to be weighing its own entry into the sector. As part of the partnership, Schwarz Group will also acquire a 9.9 per cent stake in 1GLOBAL, which holds telecom licences and partnerships across 12 countries.
The move underscores Schwarz’s wider ambitions to build a digital ecosystem around its retail base, combining financial, telecoms and loyalty services under one umbrella.
Alongside its push into telecoms, Lidl is continuing to expand its physical footprint. The retailer has unveiled plans to open more than 50 new stores across Britain over the next year, creating around 2,000 jobs as part of a £600 million investment programme.
New locations are expected in Abbots Langley near Watford, Warrington in Cheshire and Thornbury in Gloucestershire, as Lidl targets a mix of freehold, leasehold and long-leasehold sites across the country. The company already operates more than 1,000 stores in Britain and employs over 35,000 people.
With both digital and physical expansion underway, Lidl is signalling its intent to evolve from a discount grocer into a broader, multi-service consumer brand.
Ryan McDonnell, chief executive of Lidl GB, said: “As we grow, we want to positively impact our British communities. We’re not just opening doors, we’re unlocking regional growth.
Our expansion translates directly into high-quality jobs and gives British suppliers the certainty they need to invest in the future. Above all, it advances our social purpose of making affordable, healthy food accessible to everyone.”
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