Lidl swings to £13.6m after tax loss

Lidl has reported losses after tax of £13.6m for the year ending in February 2020, following the group’s heavy investment into growing its workforce and store estate. 

It comes as the discount retailer reported revenues of £6.9bn as it attracted a new found customer base. 

Nonetheless, the slump comes as the group pledged to invest £1.3bn in its UK store expansion over 2021 and 2022. 

During the year the company invested £654m in the acquisition of tangible fixed assets, including  investment in its store network (51 new stores) and a brand-new Regional Distribution Centre in Motherwell servicing all Scottish stores. 

Previously, the company said its revenue for the four weeks to 27 December rose by 18% – after consumers flocked to its stores over the holiday period. 

Christian Hartnagel, chief executive, Lidl GB, said: “Whilst the world has changed considerably since this financial period (full year 2019-20), our driving focus remains on offering customers the best quality products at the lowest prices in the market.

“We will continue to focus on providing customers up and down the country with this, as we grow our store estate, logistics and operations.”

He added: “We are confident in our strategy and see huge potential in the market long-term and will continue to hire more colleagues, invest in British suppliers, open more stores and become an integral part of more communities.”