Lidl combines Lidl Plus rewards with in-store bakeries

Lidl is intensifying its loyalty strategy across Europe by leveraging its in-store bakeries to drive engagement with the Lidl Plus rewards program. Seeking to boost customer data collection, the discounter has rolled out innovative loyalty campaigns that encourage app adoption. A notable example comes from Lidl Finland, which shared insights from its recent month-long loyalty initiative: shoppers who used the Lidl Plus app were given the opportunity to spin a virtual roulette wheel, with the chance to win a bakery item. The campaign allowed winners to choose from four different products, redeemable within five days. Throughout the initiative, Lidl Finland distributed over a million bakery products, underscoring the effectiveness of this approach.

Lidl’s in-store bakery strategy has evolved into a key element for driving repeat visits and strengthening its market position, particularly in regions where competitors hold significantly larger shares. In Finland, where the domestic grocery market is dominated by S Group (48.3%) and K Group (34.3%), Lidl achieved a 9.6% share in 2023, according to the Finnish Grocery Trade Association. To enhance its appeal, Lidl in Finland recently overhauled its bakery sections, creating three specialized areas: ‘snacks’ with street food inspirations, sweet pastries like donuts, and ‘guest stars’ featuring time-limited and seasonal items.

The concept is not unique to Finland; similar campaigns have been implemented across Europe. Lidl first piloted this type of loyalty mechanic in the UK under the ‘Super Spin’ program. Meanwhile, comparable campaigns have been introduced in Germany and the Netherlands, branded as ‘Bake-Off-Roulette.’ These efforts not only drive app engagement but also provide Lidl with valuable data on customer preferences for entry-level bakery items, offering insights that could be the base for future assortment adjustments.

Over recent years, Lidl has adopted a more dynamic approach to its bake-off assortments, incorporating seasonal variations, international-themed weeks, and street food-inspired selections to encourage store visits.

A key factor behind the success of these campaigns is vertical integration. The parent company, Schwarz Group, has invested in bakery production through Schwarz Produktion, which operates two Bonback industrial bakeries in Germany. These facilities collectively produce over 8 million bread rolls per week, making the distribution of free bakery items a sustainable strategy for the retailer.

In a bid to further drive the adoption of the Lidl Plus app, the company also made a strategic change earlier this year by eliminating the need for users to manually activate coupons within the app, simplifying the customer experience and encouraging broader participation.