Prices have been steadily rising in grocery stores over the past year, but as consumers grapple with a decrease in purchasing power, supermarkets are coming out on top.
Discount grocer Lidl passed the €100 billion mark for the first time with its 2021-2022 financial year, according to figures published by the parent company Schwarz Gruppe.
At a time when household food budgets are shrinking, the milestone represents a growth of 4.7%, with the increase in turnover attributed in part to the opening of 300 new stores.
Sales hit €100.8 billion in 2021-2022 fiscal year
Lidl’s parent company Schwarz Gruppe is also performing well: turnover rose from €125.3 billion to €133.6 billion.
The German-based Kaufland grocery chain, whose Lidl shops are frequently seen in Belgium, increased its turnover by 7.4% to €27.3 billion euros, according to RetailDetail.
The group in whole operates more than 13,300 shops and invested around €8 billion in expansion, modernisation and digitalisation last year.
Supermarket chains had to compete with a rise in appreciation for farmers markets that came about during the pandemic, but now that prices for produce have risen, customers are being lured back to chain stores in pursuit of the lowest prices.