Lidl and Ocado fastest growers
The Lidl loyalty program was a major contributor to growth and soaring profit figures. The company attributes £400m in direct switching from competitors and Lidl notched up 38 million more customer visits compared to last year. But it is its loyalty program that impressed the most, with £500m shown to add to the impressive end of year figures.
Pre-tax profit more than tripled in the year to 28 February 2025, rising from £43.6m in 2024
to £156.8m. Operating profit increased to £314.1m versus £220.8m a year prior, while turnover grew 7.9% to £11.7bn.
According to Lidl, the business benefitted from £400m in direct switching from competitors and a £500m growth in customer loyalty.
The grocer claimed “strategic investments” in price, product development and operations had fuelled growth.
But let us give a round of applause to a magnificent loyalty effort. Lidl has been a late entry to loyalty, but it currently boasts 11 million UK users. This is expect to continue to grow as its online loyalty app Lidl Plus will now include Lidl Pay, an integrated digital wallet and mobile payment service enabling shoppers to make contactless payments via their smartphone.
Fastest growing brands
Lidl and Ocado, the delivery brand, are the fastest growing grocers with each achieving 10.7% of sales during the 12 weeks to 10 August, as Tesco continues to dominate market share
Data also shows shoppers favouring brands over own-label items, with branded sales “particularly dominant” in personal care, confectionery and soft drinks.
According to the latest figures from Worldpanel by Numerator, Lidl’s market share increased 0.5 percentage points to 8.3%, while Ocado now holds a 1.9% share of the grocery sector, up from 1.8% in 2024.
The news comes as last month Ocado Retail reported revenues rose 16.3% in H1, with group CEO Tim Steiner saying the goal is to “continue to scale” and “grow quickly”.