In 2022, the retailer recorded a turnover of HUF 1.151 trillion, solidifying its role as the ninth-largest employer in Hungary, with nearly 10,000 staff.
This year, Lidl expects to welcome 180 million customers to its stores. At a press conference, the company highlighted two decades of growth, focusing on its contributions to the national economy and its commitment to local suppliers.
Lidl Hungary commemorated its 20th anniversary with a detailed overview of its growth and con-tributions. The company began operations in Hungary on Nov. 18, 2004, with 12 stores in cities and towns such as Barcs, Kaposvár, and Szeged. By the following year, the store count had grown to 50. In 2022, the retailer opened its 200th store on Budaörsi út in Budapest, and today, it oper-ates 210 locations with more than 261,000 sqm of retail space.
All Lidl-owned stores now meet the Edge green building certification standard of Green Business Certification Inc. (GBCI), which describes itself as the premier organization independently recog-nizing excellence in green business industry performance and practice globally.
The company’s logistics infrastructure has expanded significantly. Starting with one distribution center in Székesfehérvár (64 km southwest of Budapest by road), Lidl now operates additional fa-cilities in Hejőkürt (168 km northeast), Szigetszentmiklós and Ecser (on the southern and western borders of the agglomeration, respectively). Together, these four bases provide 200,000 sqm of storage capacity.
Construction of a fifth logistics center, the largest to date at 83,000 sqm, began this year in Kiskunfélegyháza (115 km southeast of the capital), with completion expected by 2026. This new facility is expected to enhance supply chain efficiency and create additional jobs in the Kiskunság region.
In its first full business year, Lidl achieved HUF 58 billion in revenue, which had increased to HUF 258 bln by 2014 and reached HUF 1.151 tln in 2022.
“For four years running, Lidl has been the leading FMCG retailer in Hungary, with a market share exceeding 20%,” said Zita Szlavikovics, chairwoman of Lidl Hungary’s board of directors, at the press event on Nov. 15.
Over the past five years, Lidl has contributed approximately HUF 1.219 tln to Hungary’s GDP, of which HUF 682.3 bln was direct added value, with an additional HUF 537 bln generated through indirect impacts, the firm says. These include purchasing goods from local suppliers and reinvesting wages into the Hungarian economy.
Lidl says it has also paid HUF 765.8 bln in direct taxes, along with HUF 207 bln in additional contributions through employment, supply chains, and investments.
“In 2023, Lidl paid HUF 44 bln in retail taxes, and this figure is expected to increase this year,” Szlavikovics noted.
The company’s economic role extends beyond its direct contributions. Lidl says it has invested heavily in expanding its operations and forming partnerships that create ripple effects across the Hungarian economy. By collaborating with local suppliers, Lidl helps generate further value and stimulate new business opportunities.
Indeed, local suppliers are integral to Lidl’s operations. The “Lidl for Hungarian Suppliers” program, launched in 2013, has resulted in a 73% increase in local partnerships over the past decade. Today, Lidl collaborates with 487 Hungarian suppliers, offering more than 4,500 domestic products, a 143% increase compared to 10 years ago.
“Our long-term partnerships enable suppliers to make new investments, meeting the growing demand. These collaborations have led to the establishment of new facilities to support increasing production needs,” explained Zoltán Nepp, procurement director at Lidl Hungary.
The retail chain is also a significant player in Hungarian exports. Currently, 167 Hungarian suppliers export their products to 28 countries through Lidl’s network, with EUR 338.2 million (HUF 135 bln) worth of Hungarian products sold internationally last year. Leading categories include sweet and savory snacks, generating HUF 19 bln, and wines, with 14.3 million bottles, nearly half of all exported Hungarian wines, sold through Lidl.
“One-third of Hungary’s bottled wine exports are facilitated by Lidl,” Nepp emphasized.
As an employer, Lidl has experienced substantial growth. Its initial workforce of 1,200 has grown eightfold, with staff numbers increasing by nearly 30% in the past five years alone. With close to 10,000 employees, Lidl ranks as Hungary’s ninth-largest employer, accounting for 3.3% of the country’s retail workforce.
Lidl’s impact on employment extends beyond its direct hires. Between 2019 and 2023, the company says it indirectly created an average of 3,156 new jobs annually through its operations, investments, and supply chain activities. This reflects Lidl’s strategic role in supporting Hungary’s labor market and contributing to regional development.
Customer numbers have also soared, with Lidl projected to serve 180 million shoppers this year, further cementing its position as Hungary’s top choice for grocery shopping.
Lidl’s commitment to sustainability is reflected in its efforts to achieve Edge certification for all stores it owns. The milestone underscores the company’s focus on environmentally friendly practices and efficient resource use. Looking ahead, Lidl says it plans to expand its operations further and maintain its leadership in Hungary’s FMCG sector.
This article was first published in the Budapest Business Journal print issue of November 29, 2024.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
