Lidl and Kaufland: 20,000 new jobs through mega expansion in Germany!
Schwarz Group is investing 9.6 billion euros in Lidl and Kaufland, creating 20,000 jobs and opening 300 new branches worldwide.
Lidl and Kaufland: 20,000 new jobs through mega expansion in Germany!
The Schwarz Group, which includes the discounter brands Lidl and Kaufland, presented impressively expanding figures in the last financial year. In the next few years, the company plans to open around 300 new branches worldwide, which will entail a significant investment totaling 8.6 billion euros for the 2024/25 financial year. This total represents an increase of 7.5 percent compared to the previous year. Overall, the Schwarz Group plans to increase investments to 9.6 billion euros in the current financial year, which will have a positive impact on sales growth, which was already 5.3 percent at Lidl and 2.9 percent at Kaufland, according to chip.de.
Through the expansion, the Schwarz Group has created around 20,000 new jobs, including around 4,000 in Germany. These new positions are part of the company's overall growth strategy. According to the latest information, the Schwarz Group is narrowing the area of online sales, where sales have stagnated, and instead creating constant jobs in its branches and warehouse locations. The group covers the entire value creation process, from production to trading to recycling and digitalization swr.de reported.
Growth despite challenges
The Schwarz Group has held its own despite economic challenges and was able to report total sales of 175.4 billion euros, which corresponds to a sales increase of 4.9 percent. In the previous year, growth was 8.5 percent, but the increasing number of branches shows that the group is not letting temporary setbacks slow it down. The investments are also divided into around 3.3 billion euros, which will flow in Germany to expand new branches, warehouse locations and data centers.
The focus on sustainability and innovation is also a central point in company policy. The subsidiary PreZero, which covers the Schwarz Group's recycling area, contributes 3.9 billion euros to total sales. Investments are also being made in data centers to promote digital sovereignty in Europe. These steps are part of the strategy to create an independent digital infrastructure and secure supply chains in Europe.
Criticism and measures at Kaufland
However, not everything was unproblematic last year; Kaufland came under criticism because of hygiene deficiencies in some German branches. Manipulation of the expiry dates and defective freezers were discovered. In response to these allegations, Kaufland temporarily closed two branches and announced comprehensive measures that included basic cleaning and the replacement of refrigerators. This approach shows the company's commitment to ensuring quality and safety for customers and regaining trust in the brand.
With a presence of around 14,200 stores and around 595,000 employees in 32 countries, the Schwarz Group continues its expansion and consolidates its position as one of the leading retailers in the food sector. The company thus remains a significant player in the international market and shows that, despite all the challenges, it is able to take the necessary steps for sustainable growth.