Lidl GB to open 50-plus stores in $793 million investment drive

By James Davey

LONDON, Oct 5 (Reuters) - Lidl GB, the UK arm of the German discounter, will open more than 50 new stores in its current financial year as part of a £600 million ($793 million) investment, it said on Monday, pushing for a bigger share of Britain's grocery market.

The supermarket chain, which is owned by Germany's Schwarz Group, and rival Aldi UK have expanded rapidly over the past two decades, transforming the British market and forcing traditional players such as market leader Tesco and No.2 Sainsbury's to compete more aggressively on price.

Lidl GB overtook Morrisons last May to become Britain's fifth-largest grocer by value of market share. It currently trades from about 1,010 stores and is Britain's second-fastest-growing bricks and mortar supermarket chain behind Marks & Spencer.

"We can see hundreds more opportunities for stores," Lidl GB CEO Ryan McDonnell told reporters.

DOUBLE-DIGIT REVENUE GROWTH

Aldi UK last week announced £900 million of investment next year, including 40 new stores. It trades from 1,092 and has a long-term target of 1,500. 

Industry data published last month showed that Lidl GB had a UK market share of 8.7%, up 0.4 percentage points year on year.

For its year to February 28, Lidl GB's operating profit rose 9.9% to £345 million on turnover up 10.8% at £13 billion, with the opening of more than 40 stores helping to drive an additional 43 million customer visits. It also registered a 23% jump in active users of its Lidl Plus loyalty scheme.

Given its store openings, Lidl GB is preparing for its "biggest Christmas yet", said McDonnell, including an expansion of its premium Deluxe range to capitalise on the trend among consumers opting for premium supermarket products over restaurants to save money.

($1 = 0.7569 pounds)

(Reporting by James DaveyEditing by Sam Tabahriti and David Goodman)