Lidl opens new green store in Sweden
Lidl is to open a new concept store in Sigtuna, north of Stockholm, early 2019. It will be a green store with sun-panels, eco-zones and chargers for electric cars and bicycles.
Lidl will also offer a delicatessen with food service in the store. This is completely new in Sweden.
The goal is that the store will be certified “outstanding” according to the international BREEAM standard. A handful of new Swedish Lidl stores have achieved this rating, writes retail analyst Daniel Johansson in LZ Retailytics.
The store is part of the retailer’s ambition to reach 200 stores in Sweden by 2020. Currently, there are 170 stores and Lidl has already signed agreements for a further ten new plots. Many of the new stores are in untypical locations for Lidl, including large cities centres, shopping centres and newly-built city areas. Between now and 2020 the retailer plans to invest SEK 3 bn (EUR 317 mn) in building more stores, a third warehouse and a new head office.
In 2016/17 Lidl in Sweden grew its net turnover by 7.5% to SEK 8,958 mn (EUR 946 mn). As well as building new stores, the German retailer is also refurbishing its entire existing store network. Last year 50 stores were upgraded and to date a total of 126 stores have been refurbished.
It isn’t easy to find good new locations in the consolidated Swedish grocery market; and Lidl has recognised that it must sometimes compromise even if it goes against the preferences of its top management. At the beginning of the year, CEO Klaus Gehrig in the Schwartzgroup, said that such “glass palaces are way too expensive”, but that the retailer must finish what it started, referring to similar projects outside Sweden.
It is reason to believe that Sweden will be the first country outside Germany where Lidl will show its new international standard first. This fits flawlessly with Lidl’s aim to attract new target audiences to its Swedish stores.
According to LZ Retailytics retail sales per store went up 6,2 % to EUR 3,36 million in 2016. By 2020 LZ Retailytics forecast the turnover per store to EUR 8 million, which is below the European average for Lidl stores. This implies that there are ample opportunities for organic growth in Sweden for the German giant.
The new store will have an area of approximately 3,500 square meters, of which about 1,500 will be used for sale.