Lidl Hellas President Martin Brandenburger sees 2023 as another “unpredictable and volatile year”, but notes that the market situation in terms of prices shows signs of stabilizing or even improving. The head of the largest discount supermarket chain operating in Greece, in office since November 2021, spoke to K today about the company’s investment in Greece, detailing the benefits recently announced by Lidl Greece for employees, while giving a “response” to the Ministry of Development as for the recent fine imposed on the company, and in general for the problems that he believes exist in the profit ceiling legislation, not even ruling out going to court after the example of other supermarkets that have recently been fined.

We are facing a volatile and challenging business environment. But also a particularly difficult condition for the average consumer. For us, every day was a bet on quality and trust. Even during this difficult time, we are at least 10% cheaper than our competitors based on internal research comparing over 200 major products. Our customers understand that in addition to the best value for money, we offer ease of shopping.

The Lidl Plus loyalty program continues to become more popular and personalized to the needs of the consumer, and our customers who are users of the application benefit from numerous additional offers. In particular, thanks to the function “How much you buy, so much you earn!” customers can save up to 6 euros per month. This is another important reason that has led to an increase in our customer base. We have built trust, developed a “shopping path” in the store, “expanded” the shopping cart. Our sales reflect exactly this data.

We are a discount store, but with the philosophy and capabilities of a large multinational company investing in affordable quality.

Undoubtedly, the past year was marked by unexpected events that in one way or another influenced the psychology of the average consumer. And they certainly had an impact on the local economy. I will focus more on the cost of energy and the multiplier effect it has on the production chain. We were called to take on another challenge, as was the entire Greek market, as well as the international market. The increase in electricity costs as a result of the war in Ukraine appears to have had a significant impact on operating expenses. And in our company, operating expenses more than doubled. That is why we have started to install about 10,000 photovoltaic panels, while we have taken many internal measures to reduce energy consumption. Of course, as far as possible, we make sure that our supply chain runs smoothly, thanks to the healthy partnerships that we constantly maintain. With quality conditions that provide the best prices for the consumer.

Even in this difficult time, we are at least 10% cheaper than our competitors.

We are closely following changes in the size of the market and, of course, international assessments of the development of the economy of Greece and the world. It is currently difficult to make any specific prediction as 2023 is likely to be another unpredictable and “fluid” year. Some early signs, such as commodity and energy prices, indicate that the situation is stabilizing or even improving rather than worsening.

In general, private label products are becoming more and more attractive to consumers. We are particularly pleased with the positive response our customers have to our fresh products such as dairy and cheese products. Greek consumers have realized that a private label product is not inferior to the corresponding brand name. As for Lidl Greece, we are proud that our private label products are produced by recognized quality manufacturers and have high nutritional standards. A typical example is the Galpo dairy line and, of course, the Noma line of local products of geographical origin. Obviously, another important reason that stimulates the sale of goods under private labels is a more attractive price. We offer timeless products under our own brand, which optimally combine high quality and the best market prices.

We remain the most consistent and trusted partner for our suppliers with an average payout of 41 days versus the industry average of 117 days. This consequence not only does not distort competition to our detriment, but also promotes healthy entrepreneurship and the development of our relationships with suppliers.

Today we cooperate with more than 400 Greek product suppliers, with 60% of our turnover coming from their own products. For our part, we will continue to strengthen, as far as possible, their prospects in the national market. But also highlight them dynamically, outside of Greece.

We closely follow the development of digital commerce and always act with our business model in mind. After all, innovation is inextricably linked to our DNA. Each step forward comes at the right time and in the right way.

Employee benefits and network investment

Digital signage on the shelves, new stores, as well as continued installation of photovoltaic systems are included in Lidl Greece’s investment plan for the next period.

– What is the amount of Lidl Greece’s investment in 2022 and what was it used for? What is the investment plan for the next period?

To date, we have invested more than 1.4 billion euros in total in the country. As we announced last year, we are continuing our €100 million program across our chain of stores and warehouses. In particular, in 2022 we modernized three stores in Glyfada, Syros and Kilkis, rebuilt three stores in Ioannina, Sparta and Rafina, opened two new stores in Limenas, Thassos and Neo Kosmos, and recently opened a store in Attikis Square.

At the same time, with the Lidl UP program, we are giving young people the opportunity to receive specialized training and experience in retail management, being rewarded from the very first month. This is an important initiative that we have created in cooperation with the Public Experimental IEK of Glyfada and the Hellenic German Chamber of Commerce and Industry. Our goal is to double the number of internships next year and then offer them throughout Greece.

We plan to invest 20 million euros in digitization through the use of electronic shelf labeling. We want to offer reliable and timely product and price information, simple procedures for our employees, and of course, do our part to protect the environment by saving 15 tons of paper in five years. In addition, within four years we will install photovoltaic systems in 25% of our stores, and we also estimate that we will complete the installation of electric charging stations in our entire chain of stores.

– You recently announced benefits of 6.7 million euros for Lidl Greece employees. What exactly do these benefits include?

Support comes at a difficult time and reaffirms our commitment to our 6,700+ people. This is an increase of around 5% for all employees in stores, warehouses and offices, which will be provided either on a one-time basis or on a monthly basis. This new wage policy, which will come into effect immediately from March 1, 2023, aims to create a uniform wage system for line workers in shops and warehouses throughout Greece.

In this way, we further enhance the high, above-average compensation and attractive additional benefits that we provide to our more than 6,700 employees. Benefits such as private health insurance, as well as a fixed annual food distribution program that Lidl Greece employees receive for many years during Christmas and Easter, totaling 3.3 million euros.

For example, an 8h/5d warehouse sorter with a monthly gross salary of €1,100 will receive a lump sum with March salary of €775 gross.

It is important to remember that in May last year we announced and have already implemented a social package worth 2 million euros.

clear rules

“We consistently practice responsible and ethical business. We respect and apply state laws without exception. This is a self-evident institutional obligation of every member of the legal society. But the state, for its part, has an obligation to regulate the market with a clear and transparent legal framework,” Mr. Brandenburger emphasizes in connection with the recent fine on Lidl Hellas. And he adds: “Using our values ​​and philosophy, we aim to contribute to the orderly operation of the sector, always for the benefit of consumers, especially during the critical period we are going through. For this reason, last September we submitted proposals to remove the ambiguity of the law regarding the definition of foods considered “essential for nutrition”, as well as the definition of cost-effectiveness in relation to each proposal. And also to simplify the logic of the calculation. Unfortunately, even today the environment remains unfavorable. We will continue to advocate for clear and fair rules of the game and will take legal action if necessary.”