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Croatia: Lidl outperforms market

Discount Retail Chain Lidl and its sister supermarket chain Kaufland (both owned by German SCHWARZ Gruppe) are combined the market leader in Croatian grocery retail, surpassing local supermarket chain Konzum as as competitor. Next to that Lidl's employees earn the highest average net salary in the grocery sector.


This is revealed by figures published by Lider "the 1,000 largest companies".


According to these figures the Lidl and Kaufland hold about 25% of the retail market in Croatia (Lidl 15% and Kaufland 10%). Konzum is at about 20%, Spar has 13%, and Plodine about 12%, according to a report from Danica.


Last year, the company Konzum had US $1.2 billion in revenue, which is a drop of as much as 20% compared to the previous year.


Lidl generated US $0.92 billion in revenue with a growth of 13%. Third is convenience store Spar with US$0.76 billion, which is 6% more, fourth is Plodine (US $0.69 billion and a growth of 3.6%), and fifth is Kaufland (US $0.61 billion and plus 7%).


By far the largest profit before tax was made by Lidl: as much as US $68 million. The second is supermarket Plodine with US $26 million, and the third supermarket Tommy with US $24 million.


The highest average net salaries are also paid at Lidl and last year amounted to US $1,330, an increase of 11%. Kaufland is second with US $1,070. As Konzum paid an average net salary of US $565.


Lidl is active in Croatia since 2006, with significant start-up problems, it has 102 stores and two distribution centers. Lidl shows again that being consistent and persistent discount retail is an extremely successful business model, outperforming competition and is well accepted by local shoppers and good for further economic growth in a country.



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