Discount food retailer Lidl plans further major investoments in Portugal this year, having invested €45 million last year, according to the Marin Dokozic, CEO of the Portuguese subsidiary.
"This year we plan to invest more, maintaining the growth trend, with the aim for around €60 million," said Dokozic whose employee has spend €1 billion in Portugal since it opened its first shop in 1995.
The money is earmarked for new stores and to refurbish existing stores to keep up with its main competitior Aldi.
On a possible increase in VAT in Portugal and its impact on the distribution sector, Dokozic said, "When operating in Portugal we have to adapt to the rules and laws of the market."
Lidl is of German origin dating to the 1930s and is based in Neckarsulm, Baden-Württemberg and now operates in 25 countries through 10,000 stores.
In Portugal there are 238 outlets and four distribution warehouses.
Lidl belongs to the holding company Schwarz Gruppe and the name Lidl is the surname of a former business partner of Josef Schwarz.
Ludwig Lidl was a retired schoolteacher, and Josefs Schwarz's son, Dieter Schwarz, bought the rights to the Lidl name from Ludwig Lidl for 1,000 German Marks - he could hardly use the name ‘Schwarz Markt’ meaning ‘Black Market.'
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In contrast the Lagos Aldi is poor and usually empty.