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Lidl opens 25 new US grocery stores over the next year



On Friday, Lidl announced that it will open 25 new stores next spring on the east coast of states such as Maryland, New York, Pennsylvania and the Carolinas. These openings and others will bring Lidl's American footprint to more than 100 stores by the end of 2020, two years behind Lidl's original schedule.

"We are committed to long-term growth in the United States," said Johannes Fieber, CEO of Lidl's US operation, said in a statement. "These new stores are part of the next steps in our US expansion."

Lidl is a global grocery giant with over 10,500 stores in 29 countries, but unlike its German rival Aldi, who entered the United States in 1976 and has reached nearly 1

,900 stores here, Lidl recently moved to the country.

Lidl has had mixed success since it cut the band at its first US stores in the summer of 2017.

The company originally had high targets and planned to shake up the US market by opening 100 sites by its first year. Similar to Aldi's breaking into the market: oblique prices, mostly offering brands of private brands, emphasizing organic food and choosing fresh produce.

  Lidl opened his first American store in 2017. The company says it and # 39; s on the track to run more than 100 stores by the end of 2020.

But Lidl made early mistakes. His business was too big and too far from urban hubs, which, according to analysts, submits his attempt to establish himself as a practical alternative.

"The biggest mistake they have made is about their real estate strategy," said Simon Johnstone, an analyst at Kantar. "When bigger, they lose the aura of being easy and easy to act."

Lidl recently adjusted its strategy and reduced the store opening. It replaced its US CEO last year and partnered with Boxed for an online home provider.

The company focuses on opening smaller stores in higher traffic areas. For example, it recently opened three stores outside Atlanta. The company also bought 27 Best Market supermarkets in New York and New Jersey to gain a foothold in that market. It will again notice these stores to Lidl the next two to three years.

"I wouldn't figure out they made a few small-scale local acquisitions," Johnstone said.

Lidl's biggest impact on unbound states so far has been forcing other supermarkets to reduce prices.

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six areas in Virginia and North Carolina where Lidl opened stores in 2017, reduced nearby supermarkets prices half a gallon of milk up to 55% compared to places where Lidl stores were not present, according to a survey by Katrijn Gielens, an affiliate professor of marketing at UNC's Kenan-Flagler Business School. The prices for avocado and bread were up to 30% lower at supermarkets near Lidl shops, Gielens found.

Walmart ( WMT ) has in particular counteracted Aldi and Lidl's expansion.

"The discounters are very worthy competitors and keep us very honest about the pricing position," said Greg Foran, United States Executive Director last week on a conversation with journalists. "We carefully track them."


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