Report reveals Lidl Northern Ireland boosted local economy by a record £360million as retailer marks 25 years

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 has revealed.

The findings were published in a specially commissioned report by Oxford Economics and Lidl NI 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 NI in May 1999 in Cookstown.

As part of its milestone celebrations, the retailer 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 NI’s total GVA contribution from its store-based activity boosted the economy by £120 million – up 52% from 2018 or an average growth of 9% 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 NI economy.

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

J.P. Scally, chief executive officer Lidl Ireland and NI, said: “As we mark 25 years of Lidl NI, 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 NI economy and, importantly, our customers who continue to vote with their feet and choose Lidl NI.

“With consistent growth propelling us to a current market share of 9.1%, 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 NI’s impacts across its people and local suppliers.

Now among the region’s largest employers, Lidl NI 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 benefiting most from an expanded workforce.

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

The retailer paid in excess of £30m 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 NI significantly boosted its impact, procuring almost half a billion pounds (£498m) across the region, representing a rise of 36 per cent since 2018. Of this, 80 percent of the goods are shipped outside NI, supporting the export efforts of more than 50 local suppliers.

Every council area in the region directly benefited 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, explained: “Lidl NI 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 NI’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 NI 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 NI confirmed a fresh investment of £150m 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 £2.5m will be ring-fenced 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.

Ivan Ryan, regional managing director, Lidl NI, added: “Lidl has come a long way since our first outlet in NI 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 £150m 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 NI 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 NI held a 9.2% market share and enjoyed the strongest growth amongst all retailers, up 22.9% year-on-year, according to retail information analysts Kantar.