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The Lidl supermarket chain, which is of German origin, arrived in Spain in 1994 and has grown steadily since then to become the country’s third largest food distribution company in terms of market share, and the largest that is foreign-owned.

 

With an annual turnover of over 6 billion euros, more than 670 stores, twelve logistics platforms and a team of over 18,500 people, it claims to be one of the companies that contributes most to developing the Spanish economy. Last year, it invested around 7.6 billion euros in Spain, almost 90% of which was spent on Spanish products, making a decisive contribution to its internationalisation.

 

     

 

How has Lidl's perspective of Spain changed since it arrived in 1994?

From the very beginning, our commitment to Spanish consumers has always been to offer the cheapest shopping basket with the highest quality items. Over the years we have shown that we are capable of combining both factors, and even implementing projects that add value to our products and to the entire food chain, such as launching a traditional olive oil that guarantees profits for around 250,000 Andalusian farmers. We have done all of this without ever renouncing sustainability as the main focus of our activity. Taking into account our responsibility as a large company, we work to reinforce this commitment to Spain and to contribute decisively to the country’s economic, employment and social development. In this respect, we continue to generate shared value throughout the country by opening new stores, launching new logistics platforms, creating new stable and quality jobs and purchasing more national and regional products, boosting and internationalising our suppliers' businesses.

 

How important is Spain for the company’s strategy today?

The Spanish agri-food industry is characterised by its excellence, being an international benchmark for its professionalism and the quality of its products. Since our arrival in Spain in 1994, we have therefore been firmly committed to this country as the strategic centre of our business model in order to supply our network of national and international stores. Spanish products continue to gain presence, in fact, both in our establishments here and in the over 11,500 we have in the 30 or so countries where we have a presence. Thanks to our international scale, we are a spearhead for exporting Spanish products, and many of our national suppliers have internationalised their business through Lidl.

 

One of the company's major investments is infrastructure. What is your budget each year for this purpose?

Our commitment to Spain is long-term, as we have demonstrated over the years, and which is why we are always committed to sustained and sustainable growth. In the past five years, we have invested over 1.7 billion euros in opening more than 150 new supermarkets and launching four logistics platforms. Last year, for example, we commissioned our third warehouse in Andalusia in Escúzar (Granada), and we are planning four more in the coming years in Constantí (Tarragona), Martorell (Barcelona), Parla (Madrid) and Villadangos del Páramo (León), making a total of 16 in Spain. These projects will allow us to boost our business significantly. Looking ahead to 2024, we plan to continue to invest steadily to open more stores and further strengthen our logistics capacity, generating wealth and employment across the country.

 

The other major investment is in purchasing Spanish products. What is the approximate figure?

Since we arrived in Spain, we have bought around 62 billion euros worth of Spanish products. In the past financial year, our purchases amounted to 6.7 billion, and we exported more than half of those to most of Europe and the United States. The export of agri-food products makes us a key player in foreign trade, especially for regions such as Andalusia, Murcia, Valencia and Extremadura. For years, we have been the leading buyer of Spanish market garden produce and the main platform for internationalisation, accounting for 14.8% of all fruit and vegetable exports nationally. Our commitment to national products and to exporting is making a decisive contribution to the positive impact that we are generating with our activity in Spain. In fact, in 2022, our contribution to Spanish Gross Domestic Product was 8.19 billion euros, or 0.68% of the country's total. For every euro of profit, we generate an additional 14.8 euros for the country's coffers.

 

You plan to achieve 700 stores by 2025. Is a rise to second or even first place in the Spanish food retail market on the horizon?

We do indeed plan to achieve 700 stores in Spain next year. Our aim is to be the first choice for everyone, and to do this it is essential to continue opening stores in order to be closer to consumers every day. However, we are not satisfied with just being the favourite supermarket for Spanish families. We also want to be the first choice as an employer, attracting and retaining talent, as a partner, by being the most reliable partner in the agri-food industry in Spain, and as a social stakeholder by contributing to the country’s development.

 

How will this affect employment?

Our employees are the most important thing to us. We look after their well-being, their professional development and their competitive salaries and, therefore, try to offer them the best conditions, both in terms of remuneration and social benefits. Over the past five years we have created 5,000 new jobs, and today there are over 18,500 of us. We expect to continue to increase our workforce in the coming years, in line with the company's growth. Due to our activity, the largest area of future recruitment will continue to be concentrated in our stores and warehouses, but the organic growth of our business will also require a strengthening of our central organisational structure, which means we will also recruit specialist profiles in areas such as IT, marketing and digital, finance, corporate affairs and human resources. Our challenge is to become the first choice for all those who want to take a step forward in their professional career and join a company that is constantly evolving.

 

^{Photos: Lidl}