Hyper-competitive retailing has a seemingly constant profile in the headlines of 2015 as supermarkets jostle for market share and the loyalties of UK customers.

The so-called British Big Four in particular have admitted their pitch has been under stress not only from each other but from the frequently referred to “discounters”, particularly from Germany.

Lidl, probably the best known inward investing brand, continues to pile on the pressure with an ongoing conquest to win customers from rivals via an expansion programme.

A definitive brand mix proposition of value pricing across core food items and selected consumer goods, coupled with convenience, is expected to accelerate – creating a bold imprint on Britain’s grocery landscape.

Lidl’s strategy counts among its chief pillars the recruitment of high quality graduate management; people with business acumen capable of specialising in retail. Excluding Northern Ireland, where Lidl Ireland operates stores, the business has 620 sites in the UK. That figure could almost double over time; the programme calls for between 20 and 40 new stores to open annually, based on consumer forecasting data.

Chris Scott, Public Relations and Marketing Manager in Scotland, explains that a significant number of graduates are now needed to fill a variety of roles across Britain. 

Q

How many stores are operating in Scotland, how many people does Lidl directly employ here, what general strategy does the business have to develop in this territory?

Chris Scott (CS) “Lidl currently operates 90 stores in Scotland – with the 91st store opening in Broughton, Edinburgh in December. Almost 80 per cent of the Scottish population already live within a 15 minute drive of a Lidl store. We currently employ over 1,700 people in Scotland and are planning to recruit up to 500 new employees over the next 12 months.

“During this particular recruitment phase in Scotland, we are looking for 20 new graduates to join various teams.”

Q

 Is it price alone that has buoyed Lidl’s growth during recent challenging times?

CS: “The recession obviously had a significant effect on the nation’s shopping habits. Price has become an important deciding factor for consumers who have grown much more cost-conscious. 

“Our business model is about keeping things as simple, fair and efficient as possible. It’s a principle embedded in everything we do – from how we deal with suppliers across the UK and Europe, our logistics operation and how our stores are set out, to how the products are displayed on the shelves.

“Our offering attracted many new shoppers to our stores during the recession, but what’s important is that these new customers like not only the low prices but the quality and continue to remain loyal to Lidl.

“As a result of the recession we haven’t had to change our strategy or pricing.

“In fact, rather than focusing on pricing, we’ve instead focused our efforts on further increasing the quality of our products.”

Q

Lidl stores overseas seem larger in footprint. In spite of impressive operating results and increasing footfall, does this suggest a cautious approach to going head to head with established UK chains?

CS: “Our current standard store size in the UK is around 1,063 sq m. But because of the ever changing market place, sales growth and customer expectations this has now been increased to a new standard size of 1,424 sq m.

“We’ve selected that footprint as the ideal size to give consumers the best possible shopping experience – and also the best size for Lidl in terms of current operational requirements.”

Q

 Is Lidl only looking for graduates in business disciplines?

CS: “We have a variety of graduate roles available – there is no implicit requirement for the degree to be in business or even in a business-related discipline.

“We currently have managers who joined this programme with degrees in Engineering, Geography and Hospitality Management. Every candidate is evaluated on an individual basis.

“The only stipulation we have is that for our Graduate Programme, applicants must have gained the minimum of a 2:1.

“For example, due to the nature of our business, operating across 27 European countries, a degree which involves a European language is often just as valuable as a Business-related degree.”

Q

In reality, are the “discounters” less interested in supplying the “shopping experience” element of core food retail, or is it simply that British shoppers are largely disinterested in that element? 

CS: “Our customers’ wishes shape the way we operate, and one of our core goals is to provide them with the most convenient and pleasant shopping experience – which is why we keep things as simple as possible for them. Many of our customers have busy schedules. We’re proud to offer them the quickest supermarket shop by 20 minutes [according to research conducted by Glasgow-based market researchers, Taylor McKenzie, in 2013].

“The number of lines that we sell – 1,600 compared to 30-40,000 – also helps to save time. For example, we stock eight types of bottled water compared to 130.

“Helping to eliminate an overwhelming choice of options whilst ensuring customers that they are getting the best quality is our entire business model and our simplistic approach ultimately helps to keep our prices low.”