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Despite market share gains, Lidl again failed to make a profit in Belgium last year. The discounter is making savings but also wants to continue investing in expansion.
Germany helps
Lidl’s sales in Belgium rose 3% last fiscal year to 3.24 billion euros. That growth was not enough to make a profit: the loss amounted to 31.1 million euros, compared to 29.1 million a year earlier. Per 100 euros of revenue, Lidl loses 0.94 euros, calculated De Standaard, which was able to get its hands on internal figures. The operating loss was almost 12 million euros, an improvement of 1.5 million euros.
Although the discounter has halved its red figures since record losses in 2021, it will not get into the black for the time being, despite cuts in operating costs and slight growth in market share. The German headquarters increased Lidl Belgium’s capital by 50 million last year. That money is needed if the retailer wants to achieve its ambition of having eighty more stores in Belgium by 2038, at a rate of about six store openings per year.