Schwarz Group has reported revenue growth of 7% to EUR85.7bn in the financial year 2015/2016. Lidl’s revenue grew by 9% to EUR64.4 bn, while Kaufland revenue increased by 4% to EUR21.1 bn.
Spain, the Czech Republic and Austria were some of the best performing markets (Lidl’s double digit sales growth across Europe).
The group plans to increase its capex from EUR5.2 bn to EUR6.5 bn in the current financial year 2016/17.
At Lidl, the majority of funds will be allocated in the new store openings and store remodelling based on its store of the future concept (Lidl Rushden report). Lidl will launch its first stores in Lithuania in June 2016, while it is preparing a market entry to USA and Serbia in 2018.
Kaufland has introduced a five year programme to remodel all its 650 stores in Germany to a new concept. (Kaufland Germany report).
Stick to the discount model
Despite the new store concept, Lidl aims to remain a discounter. “We are a discounter and we will remain a discounter” the Member of Board Sven Seidel said. We will create a new moderns shopping experience, but we will not give up on our discount store model which lies on fundaments like limited assortment, simple processes and good price” he added.