Schwarz Group invests 3.7 billion euros: commitment to Germany as a location!

Schwarz Group invests 3.7 billion euros: commitment to Germany as a location!

The Schwarz Group, a leading conglomerate based in Neckarsulm, Baden-Württemberg, is optimistic about Germany as a location, despite the decreasing tendency of other companies to relocate their production facilities abroad. The group, which includes the discounters Lidl and Kaufland, has invested over 30 billion euros in Germany over the past ten years, which has led to the creation of more than 60,000 new jobs. Gerd Chrzanowski, who leads the group, emphasizes: “We firmly believe in the location.” This becomes particularly relevant when you consider the current challenges for many German companies, which are increasingly migrating to other European countries or the USA due to high taxes and costs.

The Schwarz Group generated total sales of 175.4 billion euros in the 2024 financial year. This corresponds to a respectable increase of 4.9 percent compared to the previous year. Around 20,000 new jobs were created, around 4,000 of them in Germany. With a total of 595,000 employees worldwide and innovative approaches to expansion, the company is showing positive development, while many competitors, such as the mechanical engineering company Herrenknecht, are faced with the challenge of relocating their production abroad.

Investments and future plans

Despite the challenges, the Schwarz Group increased its investments by 7.5 percent to 8.6 billion euros. Of this, 3.3 billion euros will flow into projects in Germany. For 2025, the company is planning investments totaling 9.6 billion euros, of which 3.7 billion euros are earmarked for the German market. These strategic investments are part of the growth plan, which is supported by an expansion of the Lidl and Kaufland store network. In recent months, the latter has expanded its network by around 300 new branches to a total of around 14,200 branches.

Lidl increased store sales by 5.3 percent to 132.1 billion euros, while Kaufland achieved sales of 35.2 billion euros, which corresponds to growth of 2.9 percent. This shows that the company is successful both in stationary retail and in the online sector, where stable sales of 1.7 billion euros were achieved.

Industry challenges

Current trends indicate an increasing relocation of production facilities, particularly in the automotive sector. Many companies are considering relocating their production to Eastern Europe, which may jeopardize the competitiveness of Germany as a location. For example, the mechanical engineering company Herrenknecht has loudly expressed its disappointment with the general conditions in Germany.

Nevertheless, the Schwarz Group shows that even in a difficult market environment it is possible not only to invest, but also to create jobs and increase sales. Gerd Chrzanowski's leadership believes that Germany can be strengthened as a business location through further investments.