Lidl GB has reported another year of strong growth, with turnover rising 10.8% to £13 billion for the financial year ending 28 February 2026, up from £11.7 billion the year before. Operating profit also increased, reaching £345 million compared with £314 million in the previous year.
Lidl achieved a record market share over the period, welcoming 43 million more customer visits and selling 486 million more products. Their value-led retail continuing to gain ground, the results offer some useful signals for suppliers across housewares, small electricals and DIY.
A growing force in UK retail
Lidl's position in the UK market has strengthened considerably. In May 2026, it became the UK's fifth-largest supermarket, and three in five British households now shop there. It has also been the fastest-growing bricks-and-mortar retailer for more than three years.
Much of this growth has come from winning over shoppers from other retailers. According to Worldpanel by Numerator data cited by Lidl, more than £650 million in spending switched directly to Lidl from competitors during the year.
What drove the growth?
Price remained central to Lidl's strategy. The business invested £315 million in price cuts and promotions, including its 'Pick of the Week' offers, and launched a new 'More to Value' brand platform during the period. In July, it was also named the cheapest supermarket in The Grocer's 'Super Grocer 33' analysis.
Interestingly, value-seeking shoppers were also willing to trade up. Sales of Lidl's premium Deluxe range rose by 12%, showing that customers are looking for quality as well as low prices. Growth was strongest in core grocery categories, including fresh meat, poultry, fruit and vegetables.
Lidl GB CEO Ryan McDonnell said the business remains focused on "low prices, high quality, and maximum value for our customers" as it continues to grow.
More stores opening
Lidl passed its 1,000th store milestone last year, opening more than 40 new stores. It also invested £43 million in upgrading over 70 existing sites, with improvements including store remerchandising, larger freezers, self-checkouts and energy-efficient lighting and chillers.
The expansion shows no sign of slowing. More than 50 new stores are planned for the current financial year, supported by a £600 million investment.
Lidl Plus: a growing digital audience
Lidl's loyalty app continues to play a bigger role in bringing shoppers through the door, with Lidl Plus users up 23% year on year. Investment is set to rise significantly in 2026, including a 60% increase in funding for personalised coupons and the roll-out of Lidl & Go.
For suppliers, this points to a retailer that is getting better at understanding its customers and targeting offers to them, which could shape how promotions are planned and delivered in future.
Backing British suppliers
Lidl increased its spend with British suppliers by £400 million year on year, and around two-thirds of its products now come from British suppliers. It has also committed £30 billion to sourcing from the British food and farming industry over the next five years. While this commitment is focused on food, it reflects a retailer that is actively building long-term supplier relationships.
Investing in its people
Lidl also invested an additional £59 million in colleague pay during the year and doubled paternity leave from two to four weeks' full pay, rising to eight weeks after five years' service.
Why it matters to BHETA suppliers
Lidl's expanding store network, growing customer base and increasingly sophisticated digital offer all reinforce the commercial importance of value-led retail.
However, it's important to keep the results in perspective. Lidl's reported growth is predominantly driven by grocery, and the results do not show equivalent growth in housewares, electricals or DIY.
Even so, more stores and more shoppers mean more opportunities for non-food products to reach customers. Lidl's middle aisle, which includes its Parkside DIY and tools range, continues to draw shoppers in with seasonal and promotional general merchandise. For BHETA suppliers, Lidl remains a channel worth monitoring, particularly for seasonal and promotional lines.
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