Q&A: Does Lidl Franchise in the UK?

If you’re interested in running a franchise unit in the grocery sector, you may want to find out more about Lidl’s business opportunities. If so, you’re in the right place. We’re taking a closer look at the company and whether there are any Lidl franchise opportunities in the UK.

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Lidl has a network of over 10,000 stores in 20 different countries across Europe and the US. Alongside rival retailer Aldi, Lidl caters to consumers who want to get the most from their money; its shelves are lined with branded products that offer savings on essential groceries. But does Lidl franchise? We find out – but first, a bit more about the business.

In recent years, discount grocery stores like Aldi and Lidl have drawn customers away from the four ‘big’ supermarkets: Asda, Sainsbury’s, Tesco and Morrisons. By mimicking popular brands and saving money by displaying products in their shipping boxes, Aldi and Lidl have enabled consumers to complete their weekly shop for a lower price.

Studies have shown that Lidl’s customer base is made up of a high proportion of middle- and upper-class consumers, which is why you’ll find sirloin steak, smoked salmon and even lobster when you walk up and down the aisles. On the supermarket’s hallowed middle aisle, you can also find ski gear, horse-riding equipment and food mixers. By stealing more middle-class customers from big retailers like Waitrose and Sainsbury’s, Lidl has climbed its way up to become one of the UK’s top supermarket chains.

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To meet consumer demands, the German supermarket chain has worked hard to improve its sustainability strategy. All of Lidl’s own-brand cocoa comes from sustainable sources and the supermarket also plans to make sure that all of its own-brand fresh and frozen fish comes from sustainable sources.

Lidl is also taking measures to reduce the environmental impact of its supermarkets in the UK. Last year, it connected all its stores with local food projects to make sure surplus produce doesn’t go to waste.

History of Lidl

Lidl’s history can be traced back to humble beginnings in the city of Ludwigshafen, Germany. In the 1930s, Josef Scwarz joined Südfrüchte Großhandel Lidl & Co. and transformed the company into a food wholesaler over several years.

During the 1970s, Lidl laid the foundations for its reputation as a discount retailer. Josef’s son, Dieter, homed in on the budget market and kept costs low by making stores as compact as possible. Over the coming years, the Lidl chain would grow to 33 discount stores in Germany.

The 1990s represented an era of expansion for the supermarket chain. It was during this decade that Lidl brought its signature service to foreign shores. Lidl arrived in the UK in 1994, four years after competitor budget retailer Aldi made its way across the Channel.

With stores spread across Northern Europe’s major markets – Germany, France and the UK – Lidl was well on its way to becoming a household name. Since then, the chain has grown to over 10,000 units located in countries as far east as Bulgaria, Greece, Latvia and Romania.

On the up Lidl is the UK’s seventh most successful grocery chain.

Following its success in the UK and Europe, Lidl went stateside in 2017 when it opened 20 debut stores in North Carolina, South Carolina and Virginia. The company plans to open a grand total of 600 stores in the US across an extended period of investment.

It’s clear to see that Lidl is a company on the up. The news that it is looking to invest in previously untapped markets reflects the success it is enjoying on European shores. Given its record, budget supermarkets like Walmart and Trader Joe’s will be keeping an eye on Lidl as it grows across the country’s 50 states.

Lidl believes that it has work still to do in the UK too. One thing is for sure; market leaders Tesco, Sainsbury’s and ASDA will be interested to learn that Lidl is hot on their heels, having grown to become the UK’s seventh most successful grocery retailer.

Does Lidl franchise?

There are no Lidl franchise opportunities currently on offer in the UK. At the moment, the retailer is focusing on expanding its company-owned network in order to efficiently grow the Lidl brand across international territories. All stores are run by Lidl Stiftung & CO. KG and its parent brand, Schwarz Gruppe, which also operates international hypermarket chain Kaufland.

How to get involved with Lidl

Unfortunately, there aren’t any other business opportunities with Lidl. If you’re enthusiastic to get involved with the brand, you should browse its current job vacancies or – if you’re just out of uni – consider its graduate opportunities.

The retail market in the UK

Everyone needs to visit a grocery store at some point, so it’s not surprising that UK supermarkets made a revenue of £181 billion in 2019. More than a million people work in the sector, helping consumers complete their weekly shops up and down the country.

Lidl is one of the major players in this industry. In recent years, it has risen to seventh place in the UK top 10 supermarket ranking. At the moment, it’s putting £500 million towards opening 40 more grocery stores in London over the next five years.

Similar franchise opportunities

Generally, supermarkets don’t use the franchise model as means of expansion. In some situations, they may establish partnerships with master franchisors who own all the stores in a given country.

However, there are some supermarket franchise opportunities. For instance, the US convenience store chain 7-Eleven has found its way into countries like Japan, Hong Kong and Indonesia through franchise agreements. Here are a few other options:

SPAR

If you’re hoping to join a hugely successful, world-renowned supermarket franchise, look no further than SPAR. The brand began in 1932 with one Dutch store. By championing “fresh food”, “fresh-looking stores” and “fresh ideas”, SPAR has become the world’s largest food retail chain, operating over 12,000 stores across 34 countries. In the UK alone, 50,000 friendly staff form the face of the brand, helping to generate a turnover of over £3 billion.

• How much you need to invest: SPAR hasn’t published details about its investment requirements, but you can find out by getting in touch with the franchise.
• What you get for your investment: Franchisees can benefit from the worldwide recognition and trust of the brand and extensive financial support. SPAR stands out from the competition as a result of its own range of essentials that boasts over 1,000 lines. If you are interested in joining SPAR, simply head to their website to get started.

One Stop

This subsidiary of Tesco operates more than 770 company-owned stores and 160 franchisee-owned stores across England, Wales and Scotland. Franchisees are not constrained to a specified list of supplies; as long as they purchase 95 percent of their stock from One Stop, they have the freedom to select their own local suppliers to make up the remaining five percent.

• How much you need to invest: One Stop is looking for established retailers who would like to convert their store into a One Stop franchise and are willing to pay up to £50,000 to make that happen.
• What you get for your investment: The franchise will provide a store re-fit, refreshing the interior and exterior of the shop to reflect the One Stop brand in accordance with the existing store’s size, dimensions and features. Fill out the franchise’s online form to find out whether you fit the criteria and qualify for a free consultation.

Get up to speed with supermarket franchise opportunities

To find out more about the grocery sector, how shopping habits are changing and why the retail market is shifting, read our article on the top supermarket franchises in the UK.

Alternatively, browse other franchise opportunities in retail.