Lidl hails £500m loyalty growth as profits triple

Lidl GB has maintained its position as the fastest growing bricks-and-mortar grocer for another year, notching up 38 million more customer visits compared to last year.

Pre-tax profit more than tripled in the year to 28 February 2025, rising from £43.6m in 2024 to £156.8m. Operating profit increased to £314.1m versus £220.8m a year prior, while turnover grew 7.9% to £11.7bn.

According to Lidl, the business benefitted from £400m in direct switching from competitors and a £500m growth in customer loyalty.

The grocer claimed “strategic investments” in price, product development and operations had fuelled growth. Boasting 11 million UK users, loyalty app Lidl Plus will now include Lidl Pay, an integrated digital wallet and mobile payment service enabling shoppers to make contactless payments via their smartphone.

Lidl announces major pre-Christmas price push

The grocer says these developments underline its “commitment to continuously evolving the customer journey”.

Lidl, which has been operating in the UK for four decades, has maintained a competitive position in the market. In August, Worldpanel by Numerator data revealed Lidl and Ocado are the UK’s fastest growing grocers. Both saw a 10.7% uptick in sales over the 12 weeks to 10 August.

According to Worldpanel data from last week, Lidl now holds 8.2% market share, close behind Morrisons at 8.3%.

Looking specifically at the festive season, the supermarket’s Christmas 2024 sales increased 7% year-on-year, exceeding £1bn turnover in the four weeks to 24 December. This year, Lidl is predicting 22 December will be its busiest trading day.

‘Discounter efficiency’

CEO Ryan McDonnell claims the results “reflect the momentum” Lidl has built and the “trust” shoppers place in the business, particularly with regards its “promise of outstanding quality at the lowest possible prices”.

“Over the last year we have continued to operate with our discounter efficiency at the heart of everything we do, all the while investing strategically in areas that will benefit our people, suppliers and communities,” he adds.

Lidl recently announced a £250m investment in over 1,000 product price cuts in the run-up to Christmas. This move follows innovation in the digital space earlier this year, when in February the grocer became the first supermarket to sell on TikTok Shop in the UK.

The retailer is set to open its 1,000th store as part of its broader expansion plans, with 13 new shops slated to open between now and Christmas.

The supermarket’s success is taking place in a highly competitive market. Earlier this month, Asda announced an expansion of products available on its Rollback discount programme, while in March, Co-op announced it would price match Aldi for the first time. Tesco and Sainsbury’s have also been increasing innovation and personalisation around their respective Clubcard and Nectar price schemes for members.

Earlier this month, Tesco claimed its brand perceptions were “outperforming” the market, having risen 77 basis points year-on-year to 28.4%, with the supermarket having gained share for 28 consecutive weeks.