The British arm of German discount supermarket Lidl said on Monday it would invest £4 billion ($5 billion) in UK food businesses in 2023, as it accelerates its spending plans.
In 2019, Lidl GB committed to a £15 billion investment in the UK food industry from 2020 to 2025.
The new figure is expected to hit £17 billion.
Lidl GB says it sources two-thirds of its core products from the UK, working with over 650 suppliers across the country.
Fastest Growing Grocer
Lidl GB and fellow German owned discounter Aldi are Britain's fastest growing grocers, benefiting from new store openings and their appeal to consumers seeking savings in a cost-of-living crisis.
Earlier this month Lidl GB reported a 24.5% jump in December sales year-on-year.
Currently trading from 950 stores it plans 1,100 by 2025, the company noted.
'A Very Modest Return'
Lidl GB's 2021-22 profit of £41.1 million ($49 million) on revenue of £7.8 billion is 'a very modest return', but the company is focused on the long term, its boss said in November.
"We've been relentless in the investment in infrastructure and really laying foundations for future growth," Ryan McDonnell, CEO told Reuters after the results were published.
He said margins were low because the business was investing in keeping a lid on prices.
McDonnell noted that Lidl GB invested £653 million in fixed assets in its year to 28 February, 2022, included two new distribution centres and over 50 new stores.
News by Reuters, edited by Donna Ahern, Checkout. For more retail stories, click here. Click subscribe to sign up for the Checkout print edition.