Lidl non-food and private label expansion

Lidl is pursuing a strategic expansion of its non-food business to increase its revenue share beyond the historical average of approximately seven percent. This growth is driven by its private labels, Livarno Home and Esmara.

Livarno Home, established in 2015, provides household goods such as furniture, lighting, and textiles through a diverse supplier network including Delta-Sport Handelskontor, OWIM, EDI Light, HOYER Handel, MATO Interpräsent, and FMD Möbel GmbH. To support this, Lidl is redesigning store layouts to include dedicated themed areas for these products.

In the apparel sector, the Esmara brand focuses on women’s clothing, including basics, maternity wear, and seasonal autumn/winter collections. The brand has utilized collaborations with figures like Heidi Klum and has implemented sustainability pilots using ‘Cradle to Cradle Certified’ gold-standard biodegradable textiles. Esmara aims to compete in the fashion market by offering budget-friendly alternatives to high-end trends, such as mirroring viral designs at significantly lower price points.

Expansion efforts have extended to regional markets; in Croatia, Esmara is offering seasonal items like knit dresses and thermal leggings, while in Serbia, the Lupilu brand is introducing children’s collections featuring Disney and Marvel characters.

Alongside these brand expansions, the retailer utilizes specific pricing strategies, including discounts of up to 50 percent on fresh produce, dairy, and meat near expiration to manage inventory and reduce waste.