Lidl sees 12% rise in 2005 sales

The German discounter Lidl saw annual sales in 2005 rising by 12 per cent to 40 billion euros, underscoring the impact of its three-pronged growth strategy via expansion in Eastern Europe, improving sourcing and logistic capabilities and its development of private labels. Lidl, however, did not disclose net profit figures.

The Lidl brand and food retailer Kaufland also posted positive figures last year. The retailer, known for its deep-discount offer that challenges its bigger full-service supermarket rivals, remains keep on its expansion plans in Eastern Europe by announcing new store openings in Slovenia and Croatia. Kaufland, meanwhile, is expected to open new stores in Bulgaria and Romania. The retailer has also announced plans to develop its own bio products line and has recently said that it will offer fair trade products under its Fairglobe brand.