Lidl Great Britain (GB) is set to revolutionise the UK's retail industry with the launch of an innovative tool designed to address wage disparities among banana plantation workers.

The discounter claims it is the first retailer to introduce such a mechanism, which will be rolled out across its entire banana supply chain next month.

Developed in collaboration with IDH, the tool calculates the premium Lidl must pay to close the living wage gap for its individual workers and plantations.

By collecting and auditing supply chain data, the tool identifies wage gaps and enables suppliers to create action plans to remedy this.

These plans can be implemented through increased salaries, bonuses, or other benefits.

This move follows Lidl GB's 2023 commitment to closing the wage gap in its banana supply chain by 2027, a target the retailer is on track to exceed.

The discounter is also sharing its learnings with producers and suppliers and making the tool accessible to other supermarkets to encourage industrywide adoption.

“We recognise the importance of addressing wage disparities within our supply chain," said Richard Bourns, CCO at Lidl GB.

"Through the introduction of this innovative tool, we are not only fulfilling our obligations as a responsible retailer but also setting new and ambitious standards across the industry. It sets a precedent for ethical sourcing, but most importantly, helps ensure fair wages for workers on banana plantations.”

The supermarket chain said the tool has already proven successful in trials conducted in Lidl Germany, where the retailer exclusively offers bananas that meet living wage standards.

Lidl GB's initiative is expected to have a profound impact on the retail sector, demonstrating a strong commitment to social responsibility and supply chain transparency.