The British arm of German discount supermarket Lidl has raised pay for store and warehouse staff for the third time in 12 months.
With Britain's stubbornly high inflation rate falling by less than expected to 8.7% last month, the Bank of England is watching pay settlements closely as it weighs any further rises in interest rates.
Schwarz Retail Group
Lidl GB, part of the Schwarz retail group, employs 24,500 hourly-paid workers in Britain.
It said that from September, staff working outside of London (outside the M25 motorway) will see hourly pay increase to £11.40 (€13.10) from £11.00 (€12.64), rising to £12.30 (€14.13) depending on length of service.
Pay for London workers (inside the M25) will increase to £12.85 (€14.77) from £11.95 (€13.73), rising to £13.15 (€15.11).
Lidl GB said it has invested £60 million (€68.9 million) in staff pay over the last year.
Lidl GB and rival discounter Aldi UK are Britain's fastest growing grocers, with sales up 23.2% and 24% respectively over the 12 weeks to May 14 year-on-year, according to industry data.
Regional Distribution Centres
Earlier this month, Lidl announced plans to recruit over 1,500 distribution centre workers to support its store expansion across the country.
The stores are serviced by a network of 13 regional distribution centres.
Lidl GB also said it has submitted plans for a new distribution centre in Leeds, northern England, which if approved would create a further 400 jobs, the discounter said.
Read More: Lidl And Kaufland Owner Schwarz Group Reports €154bn In Sales
News by Reuters, edited by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.