CEO of Lidl Italia, Massimiliano Silvestri, has stated that the company is exploring potential acquisitions in the fragmented Italian market, although no deals are imminent, according to media reports.
Speaking during the presentation of the Mediobanca report on the Italian large-scale distribution market, he highlighted the fragmented nature of the Italian grocery market, where the top two companies hold less than 30% combined.
He suggested that generational shifts and smaller competitors’ limited growth potential could create acquisition opportunities for Lidl.
Silvestri added that any potential acquisitions are not imminent and Lidl’s primary growth strategy remains organic.
The discounter plans to invest €1.5 billion to open roughly 150 new stores over the next three years, continuing the pace of expansion seen in recent years.
The focus will be on central and southern regions, including major cities like Rome, Naples, and Bari.
Expansion Plans
Lidl will also focus on expanding its Italian presence, comparable to Conad in terms of the scale of investment.
Silvestri cited the significant growth potential of the discount market in Italy, which has doubled its market share since 2010.
He underscored Lidl’s preference for owning its store locations and the need for larger stores of at least 800 square metres to offer its full product range.
Though primarily focused on organic growth, evidenced by 100 new real estate contracts, Lidl remains open to acquisitions in case of favourable circumstances.
While open to external growth opportunities if they arise, Silvestri stressed that any such moves would be carefully evaluated.
Silvestri added that the company expects growth in the range of 1%-1.2% in FY 2025, in line with Italy’s GDP, following two contrasting years: 2023 with inflation-driven turnover and stable margins, and 2024 with volume-driven growth and lower margins due to deflation and increased investment in attracting consumers.
Lidl has invested €3.5 billion in the past ten years in Italy, with €400 million spent in the last year alone.
Lidl Italia has opened 23 new stores in the first two months of 2025, bringing the total to 800.
Via ESM