Lidl GB has announced plans to invest £4 billion into British food businesses during its 2023 fiscal year.
The purpose of the funding is to provide suppliers with support to invest in and grow their businesses.
It builds on Lidl’s £15 billion investment – to be invested across the 2020-2025 fiscal years – into the sector announced back in 2019.
“The farmers and producers that supply us, some of which have been with us for decades, are paramount to the success of our business,” Lidl GB CEO, Ryan McDonnell said.
“We see them as partners in our mission to provide households with high-quality affordable produce, and for many, working with Lidl GB and being part of our growth has opened opportunities for their own expansion, both here in the UK and across the globe.”
Martin Kottbauer, chief trading officer at Lidl GB added: “Providing our suppliers with the security and certainty needed for them to invest and grow has been a big focus for us over the years.
“It’s why we’ve led the industry on the introduction of longer-term contracts, and it’s why our continued investment in the British food and farming industry remains an absolute priority for our business.”
In other supermarket news, Tesco has today (Tuesday, January 31) announced proposed changes to its staffing and store structures, including the closure of its remaining counters from February 26.
The supermarket said it has “strengthened” its aisle ranges to ensure that customers can still find “the meat, fish and deli products they want”.
All affected colleagues will be offered alternatives roles in store, Tesco added.
It will also be closing eight pharmacies and reducing hours at some Post Offices.
It’s expected that this – and other changes announced today, revolving around management structure – will impact 350 roles across the business.
Tesco UK and Republic of Ireland CEO, Jason Tarry said: “These are difficult decisions to make, but they are necessary to ensure we remain focused on delivering value for our customers wherever we can, as well as ensuring our store offer reflects what our customers value the most.
“Our priority is to support those colleagues impacted and help find alternative roles within our business from the vacancies and newly created roles we have available.”
It is not the only supermarket to make such changes; Asda last week (Thursday, January 26) shared three change proposals which include replacing overnight shifts in some smaller stores, a 22% reduction in colleague hours for all 23 in-store Post Offices, and reducing hours at four, and closing seven of its pharmacies.
“The retail sector is evolving at pace and it is vital we review changing customer preferences, along with our own ways of working, to ensure we are operating as efficiently as possible, so that we can continue to invest and grow our business,” Ken Towle, Asda’s retail director, said.
“We are now entering a period of consultation with our colleagues on these proposals. We recognise this will be a difficult time for them and will do all we can to support them through this process.”
The British Retail Consortium (BRC) predicted earlier this month that 2023 would continued to see inflation rising, affecting not only customers, but retailers too.
At the time, Helen Dickinson, the chief executive of the BRC, said: “2023 will be another difficult year for consumers and businesses as inflation shows no immediate signs of waning.
“Retailers will continue to work hard to support their customers and keep prices low,” she added.
