Lidl is set to launch budget mobile phone plans in several new markets later this year, as it looks to open up new revenue streams beyond grocery.
According to the Financial Times, Lidl is preparing to expand its mobile offering beyond its existing presence in Germany, Austria and Switzerland, with potential future markets including the UK, US, France and Spain.
Lidl has not confirmed which countries will be targeted first.
The plans will be offered through Lidl Plus, the retailer’s app-based loyalty platform, which now has more than 100 million users.
Lidl owner Schwarz Group has struck a deal with communications provider 1GLOBAL, allowing the supermarket to operate as a mobile virtual network operator (MVNO). That means it can offer mobile services by using existing telecoms infrastructure rather than building its own network.
The decision places Lidl among a growing number of non-traditional businesses entering the telecoms space in a bid to strengthen customer relationships and broaden their offer.
Fintech groups including Revolut, Klarna and N26 have also moved into the market, while Monzo was reported last year to be exploring a similar proposition.
As part of the agreement, Schwarz Group will also take a 9.9 per cent stake in 1GLOBAL, which already has telecoms licences and partnerships across 12 countries.
The mobile push marks another step in Schwarz’s wider digital ambitions.
Alongside Lidl and Kaufland’s 14,000 stores, the group has been building out a broader technology ecosystem through Schwarz Digits, its fast-growing cloud computing and cyber security arm, while also investing in AI start-ups.
Analysts told the FT that Lidl’s expansion into additional markets could heap further pressure on established telecoms providers, particularly as new entrants compete on price and convenience.
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