Lidl to open three supermarkets this month

Lidl, the supermarket chain connected to the steamy Safi development controversy, is opening three outlets in Luqa, San Ġwann and Sta Venera on April 24, to the tune of €4.7 million (Lm2 million) each, while the Safi store is scheduled to be in operation before October, Lidl Malta Ltd said yesterday.

Distancing itself from the outside development zone permit scandal that saw the Malta Environment and Planning Authority audit officer slam it, claiming it was illegal, and resulting in the resignation of the Development Control Commission last month, Lidl Malta Ltd country manager David Gatt insisted the company was not a building contractor but an operator in the retail industry and that it was never involved in any permit application process.

"The company only takes over a store once the permits are issued and has no intention of doing anything against the law," Mr Gatt insisted, adding that, of course, Lidl Malta Ltd was not happy about the matter.

Mr Gatt pointed out that it was using the services of various companies and contractors and would decide whether to invest in a site according to the permits in hand.

The plan is to open more outlets but it would first be studying the market and would then decide on the possibility, Mr Gatt said. It has another two pending applications in Żebbuġ and Żabbar.

Lidl Malta Ltd has no Maltese shareholders and is owned by Lidl Italia and Lidl Servizi Immobiliari, which belong to the German Lidl&Schwarz multinational group. Schwarz ranks fourth in the top 10 stores in Europe, with a turnover of almost €35 billion in Germany, behind France's Carrefour and the UK's Tesco, Lidl Italia's CFO, Luca Boselli said at the launch yesterday.

The group operates in 22 European countries, with more than 8,000 outlets, while Lidl Malta Ltd has engaged 50 employees and was entirely operated by Maltese. Lidl discount stores have to adhere to certain standards, including their size, which is always in the region of 1,000 square metres, and each store has to have a car park of around 120 spaces.

They have a standard layout for "easy" shopping, Mr Gatt explained.

These standards have been applied to the Malta outlets, Mr Gatt continued, adding that the company's philosophy is to offer "the best quality at the best price".

The supermarkets are stocking a range of about 1,100 everyday items, supplied by Lidl Italia from its distribution centre in Rome and also from the UK. These are being supplemented by Maltese products in line with local food consumption traditions. However, the "neighbourhood" stores, as they are described, are also stocking organic, fair trade and branded products.

The concept is based on a low-cost business model and Lidl Malta is the first to apply it locally, Mr Gatt said. He clarified "misconceptions" that Lidl stores were hypermarkets that sold in bulk and said none were franchise operations.

The idea was to keep things simple, Mr Gatt said, explaining that buyers used cost-saving measures, which would be passed on to the consumers.

The company's website - www.lidl.com.mt - would be featuring promotional offers up for grabs, he said.