Lidl is venturing into the mobile phone industry with affordable plans for customers who have a Lidl Plus account. The move is part of a substantial £600 million investment by the supermarket chain, which also includes the opening of 50 new stores nationwide.
Following in the footsteps of other non-traditional players in the telecom sector like Revolut and Klarna, Lidl aims to introduce budget-friendly phone plans. While already offering this service in Germany, Austria, and Switzerland, there are plans to expand to the UK, US, France, and Spain as reported by the Financial Times.
Lidl’s owner, Schwarz Group, has partnered with 1GLOBAL communications provider to operate as a Mobile Virtual Network Operator (MVNO), utilizing existing infrastructure to offer mobile plans rather than building a new network. Additionally, Lidl’s expansion extends beyond telecommunications, with plans to open over 50 new stores within the next year, generating 2,000 jobs.
The supermarket chain’s growth strategy involves acquiring new properties across Great Britain, emphasizing a commitment to supporting local communities. Schwarz Group’s investment in 1GLOBAL also aligns with its broader digital vision, which includes ventures in cloud computing, cybersecurity, and AI startups. This move could pose a challenge to established telecom providers, given the competitive pricing and convenience offered by new entrants.
The expansion and job creation efforts have been praised by Employment Minister Kate Dearden, highlighting the positive impact on local economies and job markets.