Paul Gibson, Lidl

Paul Gibson, Lidl
Paul Gibson, Lidl

The discount supermarkets have achieved phenomenal growth in the recent years and Lidl – which has 170 stores throughout Ireland, 36 of which are in NI – now accounts for around 4.6 per cent of the UK market.

The growth that Lidl has achieved since opening its first store in Northern Ireland 15 years is testament to the change in attitude of NI consumers who have accepted that Lidl products in store are sourced from local suppliers and not all simply being delivered on a lorry from Germany.

On the back of double digit growth in 2013, Paul Gibson, sales operations executive, Lidl Northern Ireland spoke to Neighbourhood Retailer about the success of the company’s focus on local produce.

“Three years ago when we started our ‘Proud to Serve You’ campaign, which really brought the emphasis on local produce to the fore,” he said.

“Our biggest challenge is that we are viewed as German discounter. However, more and more products, even from day one, have been sourced locally. Our milk, for example, has always been from Strathroy in Omagh.”

Paul continued: “Our figures speak for themselves. Within our range, meat and poultry have witnessed the strongest growth and that can only come from people trusting and knowing where we get the products from. This trust and confidence is going from strength to strength.”

Efficiencies are also credited in keeping costs to a minimum and providing value for money.

Paul explained: “We don’t allow trucks to leave unless they are 100 per cent full and we don’t waste pallet spaces. These are examples of the efficiencies that we bring in to keep costs lower in store – similarly we concentrate all our buying power as an international retailer for sourcing the best products.”

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Lidl considers itself a supermarket that operates a discount model – and like all supermarket chains, it has seen success in in its own brand products, which have contributed to taking market share in retail sales.

“Again, there is a realisation that we use local suppliers,” explained Paul.

“When we pit our own brand against branded alternatives we find that shoppers realise the competitive price and quality and seldom return to buying the branded products. Our own brand products have won awards such as Great Taste which shows that they are high quality. We now have local suppliers actively wanting to work with us which leads to better products.”

Looking at what Northern Ireland retailers want in their shopping basket, Paul is clear that it is not simply about the cheapest option.

“People want value for money but also high quality goods – and we are very good at delivering both of these things. We source the highest possible quality at the lowest possible price. There is no compromise on quality if there was we wouldn’t win the awards we do.”

Lidl’s stores are a mixture of in town and out of town and are all serviced by the company’s distribution centre and head office at Nutts Corner in Crumlin – the largest distribution centre in Northern Ireland at 35,000 sq m.

Many of the stores are now approaching 10 years old and so Lidl is investing heavily in upgrading its estate and there has already been modernisation of stores Belfast, Omagh, Enniskillen, Ballymena, Newry and Armagh.

“We have also added purpose-built bakeries at the stores in Lisnaskea, Coleraine and Newtownards; that investment works out at just under £1 million per store,” revealed Paul.