The riddle of Lidl and its faltering plans to take over in the UK

Lidl Discounters Supermarket Income REIT

Interesting article by The Grocer on the slowdown of growth for the discounters, particularly for Lidl, which has a greater reliance on debt funding.

Aggressive growth strategies have seen many of the better store locations now taken, whilst inflation is also impacting the opening of new stores, as build costs have increased significantly.

Meanwhile the discounters are having to pass through price increases to consumers quicker than any other major grocer, with price inflation of c.24% as shown in the chart below, as typical margins of around 1% mean that they have less capacity to shield consumers from inflation.

Atrato Group’s Robert Abraham CFA stated “There is a lot of noise in the media around the growth of the discounters making market share gains, but this article highlights how their fine margins make the discounters less agile than the Big 4, with an element of market share gain coming simply through inflating prices quicker”

Read the article here: https://lnkd.in/ebtxv9wY

Data source: Which? Supermarket Inflation Tracker. Inflation is annual, based on three-month periods compared with the same period the previous year.

We manage a unique portfolio

Our handpicked, geographically diverse portfolio is a critical part of the UK’s feed the nation infrastructure. Interactive portfolio map with key statistics and full portfolio download.

Key shareholder information including latest results and news announcements, share and dividend centre, consensus and research and key events 

Details of our investment strategy, key characteristics, asset management and market backdrop 

Our media hub

Ben Green discusses SUPR’s results on Sky News

The Omnichannel virtuous cycle

Proactive investors: SUPR’s latest results

Play Video about Proactive Investors