New report reveals Lidl Northern Ireland boosted local economy by a record £360m in 2023 as retailer marks 25 years in region

Northern Ireland’s fastest growing supermarket retailer announces investment of £150 million over next three years in expanding and upgrading its regional store network

• £360m GVA generated annually with at least £10 million generated in every council area.
• 6,900 jobs supported across the region including almost 1,300 direct employees.
• Almost a third of workforce aged 24 or under compared to NI average of just 12%.
• Half-a-billion pounds spent on local agri-food produce and 52 suppliers supported to export more than £400m.
• £110m contributed in tax revenues, including direct contribution of £50m.

Thursday 23 May 2024: Lidl Northern Ireland pumped a record £360 million into the local economy in 2023 – doubling its annual economic contribution over the past five years – and supported almost 7,000 jobs right across the region, a new report revealed today.

The findings were published in a specially commissioned report by Oxford Economics and Lidl Northern Ireland to directly examine the retailer’s growing impact and capture its value to the local economy as it marks 25 years since opening its first store in Northern Ireland in May 1999 in Cookstown, Co Tyrone.

As part of its milestone celebrations, the retailer today announced a further investment of £150 million into expanding its presence across new towns and cities within the region and upgrading and revitalising its existing store network over the next three years.

The major impact report also found that Lidl Northern Ireland’s total GVA contribution from its store-based activity boosted the economy by £120 million – up 52 percent from 2018 or an average growth of nine percent annually.

For every £1 generated from its store network, an estimated additional £1.20 is supported through this strong multiplier effect, ensuring significant GVA impacts are retained within the Northern Ireland economy.

Over the past decade, turnover at the company has increased at an annual average rate of 11 per cent, reaching a record £492 million in 2023/24.

J.P. Scally, Chief Executive Officer Lidl Ireland and Northern Ireland said:

“As we mark 25 years of Lidl Northern Ireland, we’re proud to share the findings of this latest economic impact report which not only affirms our position as a leading retailer and employer, but which cements our commitment to delivering for everyone in the region.

Since day one, our aim has always been to offer consumers the very best quality produce at market leading value whilst operating sustainably and delivering tangible impacts for the communities which we serve.

Today, we can clearly see the fruits of our labour and I’m very proud of the significant impacts we have delivered for the wider Northern Ireland economy and, importantly, our customers who continue to vote with their feet and choose Lidl Northern Ireland.

With consistent growth propelling us to a current market share of 9.1 percent, we’ve enjoyed phenomenal success and that’s down to the hard work and dedication of our fantastic employees across the region, as well as our incredible Northern Irish suppliers who have grown with us and continue to champion the highest quality produce.”

Other key findings in the report measured Lidl Northern Ireland’s impacts across its people and local suppliers.

Now among the region’s largest employers, Lidl Northern Ireland sustained 6,900 jobs and directly employed almost 1,300 people in 2023 – up around 50 percent in the past five years - with Derry City & Strabane, Lisburn & Castlereagh City and Newry, Mourne & Down council areas benefitting most from an expanded workforce.

Nearly a third of Lidl Northern Ireland’s workforce was aged 24 or under compared to the national average of just 12 percent, whilst it also saw an increase in number of employees aged 45 or over – growing from 9 percent of its total workforce in 2018 to 14 percent last year, underscoring Lidl’s commitment to developing a diverse, and multi-skilled team. Additionally, almost a quarter of Lidl Northern Ireland employees live in deprived area for education, skills and training or employment.

The retailer paid in excess of £30 million in wages in 2023 and invested around £200,000 and 11,000 hours in employee training and development, including launching a brand-new retail skills programme with NOW Group to provide people living with autism or learning difficulties experience in retail and a pathway to employment in the sector.

As a major supporter of the agri-food industry, Lidl Northern Ireland significantly boosted its impact, procuring almost half a billion pounds (£498 million) across the region, representing a rise of 36 per cent since 2018. Of this, 80 percent of the goods are shipped outside Northern Ireland, supporting the export efforts of more than 50 local suppliers.

Every council area in the region directly benefitted from its purchasing power, with agri-food producers in the Armagh City, Banbridge & Craigavon, Mid & East Antrim and Fermanagh & Omagh council areas being the largest beneficiaries.

The report’s author Neil McCullough, Associate Director, Oxford Economics said:

“Lidl Northern Ireland continues to trailblaze the local supermarket retail sector and this report clearly demonstrates the impressive strides the retailer has taken particularly in the last five years – significantly growing its economic contribution and dramatically growing its workforce. It’s clear to see that Lidl Northern Ireland’s proposition resonates locally and its remarkable growth will solidify its position as a leading local retailer for many years to come.”

Over the last quarter century, Lidl Northern Ireland has grown exponentially to become a significant player, capturing almost a tenth of the local grocery market and welcoming over half a million shoppers every week, with its high-quality, low-price brand proposition continuing to resonate locally.

Since 2018, the retailer has been named the region’s fastest growing supermarket retailer, with 41 stores across every county and a Regional Distribution Centre in Nutts Corner, County Antrim.

With longstanding ambitions to reach 50 stores by the end of the decade, Lidl Northern Ireland today confirmed a fresh investment of £150 million into expanding its presence across new towns and cities within the region and upgrading and revitalising its existing store network.

Of this landmark investment, over £2.5 million will be ringfenced to deliver a major transformational project to install modern shelving which will significantly increase shelf space to facilitate new product lines, offering customers even more choice at great quality and value.

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Ivan Ryan, Regional Managing Director, Lidl Northern Ireland added:

“Lidl has come a long way since our first outlet in Northern Ireland opened in 1999. Throughout the past quarter of a century, it has been a sustained story of growth, and we have no plans to stand still.

As we look to the next 25 years, we’re delighted to announce a new investment of £150 million into further expanding our presence in the region, creating employment, boosting the economy and opening up access to our quality products at low prices for even more shoppers across the region.”

As part of this investment, Lidl Northern Ireland will open a refurbished and upgraded new store at its existing Cookstown location, 25 years after the doors first opened to the island of Ireland’s first ever Lidl supermarket.

The retailer is also progressing construction plans for a new flagship store at Boucher Road, the first in South Belfast, as well as a newly developed retail park at Carryduff. Plans have also been submitted to develop new stores at Bangor, Dungannon, Craigavon and Coleraine.

At end of 2023, Lidl Northern Ireland held a 9.2 percent market share and enjoyed the strongest growth amongst all retailers, up 22.9 percent year-on-year, according to retail information analysts Kantar.

ENDS

NOTES TO EDITORS

With 41 stores, Lidl is Northern Ireland’s fastest growing supermarket since 2018, according to analysis by industry experts, Kantar.

The report by Oxford Economics was commissioned to examine and underline Lidl Northern Ireland’s commitment and contribution to the local economy, the findings of which underscore the retailer’s corporate objectives, its mission and values – and its vision for ‘A Better Tomorrow.’ [www.abettertomorrow-lidl-ni.co.uk].

Oxford Economics is one of Europe’s leading providers of economic analysis. Its best-in-class global economic and industry models and analytical tools provide an unparalleled ability to forecast external market trends and assess their economic, social and business impact.

Key report findings:

Lidl’s total operations in NI generated over £360 million in GVA contributions to GDP in 2023. Of this total, £58 million was generated directly by Lidl. As Lidl procures products and services from within its supply chain, they facilitate further economic activity throughout the region. This indirect economic impact generated £44 million in GVA contributions. Finally, through the induced channel, a further £22 million in GVA contributions was generated. The induced impact accounts for the spending of Lidl’s direct employees and those indirectly employed throughout its supply chain.

The total (direct, indirect, and induced) GVA contribution to NI GDP from Lidl Northern Ireland’s store-based activity is £120 million. This represents considerable growth of 52% since 2018, or 9% on average per year. Lidl’s store-based activity results in a regional multiplier of 2.2, in line with the multiplier for the retail trade sector at the national level. This means that, for every £1 of GVA directly stimulated by Lidl’s store-based operations in Northern Ireland, an estimated additional £1.20 is supported through indirect and induced impacts. This strong multiplier effect demonstrates the benefits of Lidl’s local procurement strategy, as significant GVA impacts are retained within the NI economy.

Lidl supported approximately 6,900 jobs in the region. It directly employed 1,294 employees in NI, who were spread across all 11 of the region’s council areas. Lidl’s operations also supported an estimated additional 4,200 indirect jobs through its supply chain spending and a further 1,500 induced jobs through the consumer spending of those employed directly and indirectly.

Lidl’s direct employment provides a range of additional social and economic benefits. Lidl’s employees in NI’s major urban areas are relatively more likely to live in deprived neighbourhoods, where there is a greater chance of people being out of work and suffering from ill health. Lidl is also a prominent provider of employment opportunities for younger people. In 2023, over 30% of Lidl’s workforce was aged 24 or under compared to just 12% for the NI economy. Furthermore, Lidl offers its staff a range of shift orientated employment contracts. More than four in every five Lidl employees work part-time compared to less than a quarter in the NI economy. Part time working is often valued by those still in education, those who are trying to reenter the labour market, and those balancing work with family responsibilities.

Lidl’s total procurement spend in NI has grown considerably, reaching £498 million in 2023, growth of 36% since 2018. All of Northern Ireland’s council areas directly benefit from Lidl’s procurement spending, though the largest benefits go to agri food firms in Armagh City, Banbridge & Craigavon, Mid & East Antrim, and Fermanagh & Omagh.

Lidl’s focus on supporting local producers results in a considerable amount of procurement taking place in NI. Almost one fifth of procurement spend, or £96 million, supports Lidl’s NI stores, up from £54 million in 2018. The remaining £402 million of procurement spend supports non-NI based Lidl stores and in doing so enables 52 NI suppliers to export to international markets. £276 million of this exported procurement goes to Lidl’s stores in Great Britain, and the remainder is exported to Lidl’s European markets.

The fiscal impact of Lidl’s total Northern Irish operations led to tax revenues of £110 million being contributed to the Exchequer in 2023. Lidl directly contributed £50 million to this total. An additional £45 million in tax revenues were generated in Lidl’s supply chain, and £17 million through the induced channel. The largest total contribution to tax revenues came from taxes on labour at £43 million.