Lidl Sverige Reports 43% Revenue Growth and Plans Major Expansion
Lidl Sverige reports a 43% revenue increase and plans to open more stores despite expansion challenges.
Key Points
- • Lidl's revenue grew by 43% since 2020, totaling nearly 19 billion kronor.
- • Plans to open at least seven new stores this year, targeting a total of 300 in the long term.
- • The company turned a profit of approximately 46 million kronor, recovering from a loss of 183 million kronor.
- • CEO Jakob Josefsson noted challenges in municipal regulations affecting store openings.
Lidl Sverige has announced a remarkable financial turnaround, reporting a 43% increase in revenue since 2020, totaling nearly 19 billion kronor for the fiscal year 2024/25. This growth, reflecting over a 2% rise from the previous year, marks a significant recovery as the company managed to turn a profit of approximately 46 million kronor, rebounding from a loss of 183 million kronor in the preceding year. CEO Jakob Josefsson credits this financial success to effective management and investments, particularly in their private label brand, Matriket, which emphasizes locally sourced products.
Despite maintaining its store count at 204, Lidl plans to open at least seven new locations across Sweden this year, targeting cities including Sollefteå, Mora, and Borås. Over the next three years, the company aims to ramp up its expansion efforts to reach a total of 300 stores nationwide. However, Josefsson highlighted that the path to growth is fraught with challenges due to stringent municipal planning regulations that can stifle new store openings. He pointed out that these regulations disadvantage consumers by limiting competition and pricing options.
Lidl’s robust performance and commitment to sustainability were underscored by Josefsson, who expressed appreciation for the support from employees and customers, which he believes has been crucial in driving the company’s recent success.