Does Lidl Franchise in the UK?

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does lidl franchise

Lidl is a German supermarket chain that has over 10,000 stores in twenty different countries across Europe and the US. Alongside rival retailer Aldi, Lidl caters to consumers in the UK that want to get the most for their money. Its shelves are lined with branded products that offer savings on essential groceries.

Shoppers across the UK flock to Lidl for cut-price deals that lessen the blow of their weekly shop. Over Christmas last year, the supermarket celebrated a record number of customers browsing the aisles of its 700 different stores in the UK. Sales were up 16 percent on the previous year, with Brussel sprouts and prosecco being the number one items on the nations shopping list. Lidl also managed to ship 17 million mince pies over the Christmas period.

But these impressive financial stats havent appeared out of the blue. Lidls revenues have been growing consistently for years. The supermarkets chains have grown year on year as far back as 2014, thanks to the supermarkets growing appeal to a middle-class audience. Recent studies have shown that one-third of Lidls customers are from upper- or middle-class backgrounds.

Thats why customers can easily find sirloin steak, smoked salmon and even lobster when they walk up and down the aisles of their local Lidl. On the supermarkets hallowed middle-aisle, you can also find ski gear, horse-riding equipment and food mixers. By stealing more middle-class customers from big retailers like Waitrose and Sainsburys, Lidl has climbed its way up to become the UKs seventh biggest supermarket chain.

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To meet the demands of this new market, Lidl has worked hard in recent years to improve its sustainability strategy. 100 percent of Aldis own brand cocoa comes from sustainable sources, and the supermarket also plans to make sure that 100 percent of its own brand fresh and frozen fish comes from sustainable fisheries.

Lidl is also making strides to reduce the environmental impact of its supermarkets here in the UK. Last year, it connected all of its stores with local food projects to make sure that surplus produce doesnt go to waste. By 2025, Aldi has promised to make 100 percent of its own brand packaging widely recyclable, reusable or refillable.

The History of Lidl

Lidls history can be traced back to its humble beginnings in the city of Ludwigshafen, Germany. In the 1930s, Josef Scwarz joined Sdfrchte Grohandel Lidl & Co. and over a number of years he transformed the company into a food wholesaler.

During the 1970s, Lidl laid the foundations for its reputation as a discount retailer. Josefs son, Dieter, honed in on the budget market and kept costs low by keeping stores as compact as possible. Over the coming years, the Lidl chain would grow to 33 discount stores in Germany on the western side of the Berlin wall.

The 90s signified a new era of expansion for the supermarket chain. It was during this decade that Lidl brought its signature service to foreign shores that were also hungry for discounted food and drink. Lidl arrived in the UK in 1994, four years after competitor budget retailer Aldi made its way across the Channel.

With stores spread across northern Europes major markets - Germany, France and the UK - Lidl was well on its way to becoming a household name. Since then, the Lidl family of stores has grown to over 10,000 and are located in countries as far east as Bulgaria, Greece, Latvia and Romania.

Following its growing success across recent years in the UK and Europe, Lidl went stateside in 2017 when it opened 20 debut stores in North Carolina, South Carolina and Virginia. The company plans to open a grand total of 600 stores in the US across an extended period of investment.

Its clear to see that Lidl is a company on the up. The news that it is seeking to invest in previously untapped markets reflects the success it is enjoying on European shores. Given its record, budget supermarkets like Walmart and Trader Joes will be keeping an eye on Lidl as it grows across the countrys 50 states.

Lidl also believes that it has work still to do in the UK. After its bumper Christmas period, you can expect the retailer to continue its development across England, Scotland, Wales and Northern Ireland. One thing for sure is that market leaders Tesco and ASDA will be rattled by the news that Lidl has grown into the countrys seventh most successful retailer.

Is Lidl a franchise?

No, Lidl does not see franchising as part of its expansion plan. All stores are directly run by Lidl Stiftung & CO. KG and its parent brand, Schwarz Gruppe. With its headquarters in Neckarsulm, Germany, Schwarz Gruppe also operates international hypermarket chain Kaufland.

Lidls worldwide network of stores is currently being run by interim chief executive Ignazio Patern. Ignazio recently took over the reins from previous CEO Jesper Hjer, who recently left the supermarket for personal reasons. Before securing the top job, Ignazio worked with Lidl as the companys Purchasing Managing Director in Italy. He is the first Italian to take the helm at the German supermarket chain.

Generally, franchising is not used by supermarket chains as means of development. Though they may organise partnerships with master franchisors who own all stores in a given country, few of them franchise individual stores. They prefer to grow using a company owned expansion model.

Though Lidl doesnt franchise, there are some international supermarket chains that do opt for the franchisee model. American convenience store chain 7-Eleven has found its way into countries like Japan, Hong Kong and Indonesia through franchise agreements.

Lidl Franchise Opportunities

Lidl is not currently offering any franchise opportunities, though it may in the future. The retailer currently sees company owned expansion as the most efficient and fruitful way to grow the Lidl brand internationally across different territories.

Alternative Franchise Opportunities

There are currently no supermarket and grocery franchise opportunities available on Point Franchise. However, our directory is being updated all the time so make sure to check back in the future.

If you are really keen to open a supermarket franchise, chains like 7-Eleven and Grocery Outlet offer business opportunities for buzzing franchisees. Major players in the British supermarket game, including Sainsburys and Londis, have also hinted that they may embark on a franchise journey in the near future.

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