The future Lidl boss Kenneth McGrath wants to modernize the discounter.
(Photo: imago images / Frank Sorge)
Dusseldorf Just a few days ago, Lidl’s UK boss presented an impressive balance sheet. In the middle of the Corona and Brexit turmoil, Christian Hartnägel was able to increase sales by twelve percent to 7.7 billion pounds and bring the retailer back into the black.
Now he is being rewarded with a big step in his career. On March 1, he will take over the management of the German business, which is still by far the most important market for Lidl. His predecessor Matthias Oppitz changes to the board of directors, where he is responsible for several countries.
This means that even before the new Lidl boss Kenneth McGrath takes office on December 1, it is clear with which management team the discounter wants to go on the offensive. And that he is determined to continue the surprisingly high growth of last year even in the difficult German market.
Since it has been clear that Gerd Chrzanowski will take over the position of general partner in the Schwarz Group, the highest management position in Europe’s largest retail group, on December 1st, the family business has been unleashed. Chrzanowski is filling important positions, creating a spirit of optimism and accelerating digitization.
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For a long time a power struggle for the top had paralyzed the Schwarz group. The long-time general partner Klaus Gehrig, despite his 73 years of age, had repeatedly reluctantly handed over to a successor. He also wanted to prevent Chrzanowski from rising to the top and instead encouraged his confidante Melanie Köhler, 30.
Lidl boss comes from the US discounter Save-A-Lot
Owner Dieter Schwarz finally ended this trial of strength. After leaving all decisions to Gehrig for a long time, he temporarily returned to active management. Gehrig and Köhler had to leave the company, Chrzanowski was promoted to the top.
Chrzanowski, who had also temporarily headed Lidl after Gehrig had repeatedly called Lidl bosses outside, immediately set about reorganizing the Lidl top staff. He recruited former Lidl manager Kenneth McGrath from the US discounter Save-A-Lot. And now other important posts are being filled.
The personnel change is made easier by the fact that Lidl board member Michael Aranda is leaving the company, making room for Oppitz. Gehrig blamed Aranda for the weak start in the USA. But in the internal communication on the current change, Chrzanowski only finds words of praise for Aranda.
He emphasizes that after a “long and impressive career”, Aranda is leaving the company after 27 years to usher in a new chapter in life. “We very much regret this decision, but we are looking forward to the time now ahead of him with Michael Aranda and we wish him all the best for it,” he said. The period until spring guarantees a careful handover.
Hartnägel proved itself in the Brexit chaos
Christian Härtnagel, however, as the future head of Germany, will have somewhat less formal responsibility than his predecessor. While Oppitz was also a member of the board of directors and thus reported directly to the general partner Gehrig, in future there will also be a person responsible for Germany on the board of directors. Board member Georg Kröll takes on this task in addition to his previous tasks.
The modernization of Lidl is a big project for the future Lidl boss McGrath. With Hartnägel he got an old friend into one of the most important positions. McGrath and Hartnägel used to work for Lidl Ireland.
Hartnägel came to Lidl in 2003 and worked his way up in the national companies in Ireland and Austria. In 2016 he took over the management of the UK business. In the company, he was given high credit for managing the severe consequences of Brexit for business and ensuring that the gaps in the shelves could largely be closed quickly due to the lack of truck drivers.
While Hartnägel brings the experience from the organization with him, his boss McGrath has an outside view. The 46-year-old has already relied on technology and digitization at Save-A-Lot – an area in which Lidl should now make significant progress. In cooperation with the start-up Instacart, Save-A-Lot offers a pick-up and delivery service in stores.
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