iscount supermarket chain Lidl has revealed its British arm swung to an annual loss after battling to keep a lid on prices as its costs rose “across the board”.
The group reported pre-tax losses of £76 million for the year to February 28 against profits of £41.1 million the previous year as it also invested heavily in the business.
Sales jumped 18.8% to £9.3 billion over the year and the group said it increased its share of the supermarket sector.
But it said the losses came as it faced a “challenging inflationary environment which led to an increase in costs across the board” and made significant investments in the chain.
The entire retail market has seen inflation, and we are no exception
The group “held firm on its promise” to keep price tags low for shoppers, spending £100 million on prices, while it also invested nearly £50 million in wage increases for staff and opened 50 new stores across the UK.
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.”