3 Jul 2020
EUR 60 million
Financial institutions and SMEs
|Date of agreement:||3 Jul 2015|
|Customer:||Lidl Sverige KB|
|Amount in SEK:||SEK 400 million|
|Amount in EUR:||EUR 43 million|
|NACE sector / loan type:||Retail trade, except of motor vehicles and motorcycles|
|Business area:||Industries and services|
The loan is provided for financing the modernisation of Lidl stores in Sweden and for the construction of new branches between 2015 and 2017.
The already established shops require upgrading due to an increase in Lidl’s standard store size. Lidl will rebuild certain branches to include bakery sections and larger fresh fruit and vegetable departments, as well as to increase its range of fresh fish and meat products.
Lidl is an international discount supermarket chain with approximately 10,000 stores in more than 20 European countries. Lidl runs stores of limited size, offering discounted prices and private labels. Currently, there are 169 Lidl stores in Sweden. The chain is part of the Germany-based Schwarz Group.
Lidl is planning to expand its network in Sweden by opening several new stores over the next three years. The investment in upgrading existing branches is expected to improve the chain’s service levels. Lidl’s market share in Sweden is currently 3.5%. The expansion of Lidl’s store network is expected to contribute to an overall increase in market efficiency, and to intensify competition in the vertically integrated Swedish grocery trade market. An improved balance between actors is expected to mitigate unfavourable impacts on price level developments.
Lidl is a high performer in environmental management, and is regarded as a market leader in introducing new energy saving concepts and logistics solutions within the grocery retail sector. The expansion of Lidl’s store network is expected to have a beneficial effect on the environment.
The construction and renovation of supermarket stores is assessed to constitute only limited potential for negative environmental impact.