Lidl to create more than 700 jobs this year, with staff to get pay rises up to €2,500

Retailer says it is looking to build on its almost double-digit growth in market share

Lidl is to create more than 700 new jobs and open four new outlets within its operations in the Republic this year as it looks to increase its market share following almost double-digit growth last year.

The jobs will be in a variety of operational and office-based roles across its network of 176 shop locations, three regional distribution centres and Dublin head office.

The new roles will bring Lidl’s total workforce in the State to more than 6,000 employees for the first time, with the retailer employing 7,500 on the island as a whole.

Lidl chief people officer Maeve McCleane said there would be permanent roles on offer but that the full-time and part-time mix would depend on the individuals who get the jobs.

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Lidl has also announced a €14 million investment in pay increases for its existing workforce in the Republic with a further £3 million being invested in the retailers’ operations in the North, which it operates from its head office in Dublin.

All employees will benefit from an increase from March 1st. On average this will result in a 7.5 per cent pay increase for employees, or about €2,000-€2,500 extra per employee annually.

The supermarket chain holds a 12.2 per cent market share after 9.9 per cent growth year on year. New shoppers and more frequent trips contributed an additional €25.5 million to its overall performance.

Ms McCleane said the retailer had had a “strong start” to the year and hoped to grow its market share.

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“It’s going to come from new stores and footfall, and we are also seeing customers are spending more with us as well,” she said. “We see more and more customers doing their full shop with us now.

“We are in a position where customers see they are going to get more value with us. What we have seen with cost-of-living increases, more and more customers are swapping to own labels.

“Kantar has reported a 37 per cent increase in own-label purchasing across the board, but we are seeing a greater increase, in the region of 47 per cent year on year.”

On inflation and the cost of living, she said Lidl would keep price increases “as low as we possibly can” for customers.

“Inflation is moderating now,” she said. “Price increases will be as low as we can possibly keep them. Although personnel costs are one of the higher costs in a business, we will be looking to reduce those and not pass those on to customers.

“Everything we do is about looking for efficiencies within the business, our processes and how we do business, even down to our electricity. We are the biggest private owner of solar installation in the country. That brings our electricity bills down.”

She added that increases in electricity costs had been “really, really significant”.

This year will see the opening of a range of new Lidl shops, including in Kilkenny, Ballincollig in Co Cork, Bettystown in Co Dublin, Limerick and the completion of a €75 million extension of the retailer’s Mullingar Distribution Centre in Co Westmeath.

Minister for Enterprise Simon Coveney said the Lidl pay increases would help staff with cost-of-living increases.

“The combination of businesses like Lidl agreeing to pay their staff more, and the Government supporting people, particularly on low incomes, we will do everything we can to help families through what is a cost-of-living crisis over the next couple of months,” he said.

“We are trying to support people, in particular on low incomes and on fixed incomes, to help them get through what is a very difficult period. The cost of paying all your bills as a family at the moment has put many families under pressure.”

Colin Gleeson

Colin Gleeson

Colin Gleeson is an Irish Times reporter