Lidl outlines £14.5bn economic contribution in FY24

Lidl GB has reported £14.5bn in gross value added to the British economy during the 2024 financial year, according to its first socioeconomic impact report.

The document sets out the retailer’s contribution through its operations, supply chain and employment. The report states that Lidl paid more than £1bn in tax in the year, with its overall economic impact framed as what the company calls the ‘Lidl Effect’.

It adds that for every £1 of direct value created by Lidl, British suppliers generate an additional £7, with a further £2 added across the wider value chain.

As part of its focus on British sourcing, Lidl invested £5.8bn in British food in 2024, with more than two-thirds of its products supplied from within Britain. The retailer said this approach helps suppliers expand and supports long-term relationships. Across its direct operations and supply network, Lidl reports that it supports 281,813 jobs in Britain.

The company’s national footprint – stretching from Dingwall in the Highlands to Penzance in Cornwall – includes links between every store or warehouse and local charities to redistribute surplus food. Charity partners, including Neighbourly, helped deliver donations equating to 18.5 million meals in 2024. The company cites data showing that 11% of UK households experience food poverty.

Ryan McDonnell, chief executive of Lidl GB, said: “We’re incredibly proud of the socio-economic impact that our operations bring to communities in Great Britain. Given that we’re on track to open hundreds more stores across the country, we’re encouraged by the numbers reflected in this report because they demonstrate our tangible contribution to the British economy as a whole.

“Cutting the ribbon on our 1,000th store is a milestone moment for us as we celebrate not just another new Lidl, but the meaningful impact it will have. We know there are still many communities which could benefit from the Lidl Effect so we remain laser focused on delivering that through our ambitious growth plans.”

Business secretary Peter Kyle added: “It’s brilliant to see a retailer like Lidl thriving in the UK, opening new stores, supporting a quarter of a million jobs and delivering billions for our economy. This milestone shows the confidence businesses have in our plan for growth, and I’m excited to see more opportunities like this open up in communities across the country.”

Lidl opened its first British store in 1994 and now reaches more than 60% of households, employing more than 35,000 staff. The retailer says competitive pay remains central to its model, with pay awards in 2024 totalling £392m above the UK Living Wage benchmark.

The report coincides with the opening of Lidl’s 1,000th British store, at East Grinstead. Lidl invested £478m in new stores and distribution centres in 2024 and plans to spend £500m on further expansion this year.

Looking ahead, Lidl intends to double its original sourcing investment in British suppliers to £30bn over the next five years. Through its schools programme, Lidl Foodies, more than 250,000 primary school pupils are expected to take part in healthy-eating lessons, with £650,000 committed to the initiative over two years.