The budget supermarket Lidl has said it will go head-to head with more upmarket grocers by opening new stores in London’s most affluent areas.
The German discounter is reportedly looking for around 300 new stores in the likes of Chelsea, Notting Hill, Highgate and Mayfair in what is being billed as a change of strategy for the chain as it tries to attract wealthier customers.
The move puts Lidl in direct competition with supermarkets such as Waitrose, Tesco and Sainsbury’s.
Unlike rivals struggling to boost sales, Lidl has seized a 4.1 per cent share of the market after growing sales by 12.8 per cent in the 12 weeks to 16 August, according to the latest Kantar data.
In the meantime Tesco’s market share dropped to a 10 year low, while Waitrose, owned by John Lewis Partnership, announced a 1.3 per cent drop in sales, its first fall in seven years, on Thursday.
Morrisons has announced the sale of 140 convenience stores and the imminent closure of 11 stores after 47 per cent slide in annual profits.
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Richard Taylor, Lidl’s UK property director, said the prices at the tills will not differ between stores, despite being located in more affluent postcodes.
“The nature of our store concepts mean that customers will be able to carry out their full weekly shop no matter which store they visit, and have confidence that prices will remain consistent across all locations,” said Mr Taylor. “We are looking forward to offering our fantastic value and quality products to more customers, as well as bringing new jobs and investment across London.”
The expansion in London and the M25 area is part of Lidl’s will to attract affluent customers with upmarket food and drink as well as eventually operate 1,500 UK stores.
It currently has 629 stores including 70 within the M25
