Lidl officially opened its first 10 stores in the United States in mid-June and the world’s top retail analysts say the German supermarket chain will seek to have assortments 50% cheaper than its competitors in the United States.
This figure is based on a comparison of products sold in the top supermarkets in the nation. However, in a survey by Kantar Retail in the United Kingdom, it was found that Lidl was on average 15% cheaper than its main competitor, Asda.
This is a big difference with what they hope to achieve in the U.S., which is to be 50% cheaper than its competitors.
Lidl plans to clearly differentiate themselves from their competitor (Aldi) with their 2,000 square foot stores. By offering a larger shopping experience than other “hard discount” grocery stores, Lidl is set on being the main destination for shoppers looking to fill their weekly groceries, but also a destination for those looking to save money on their purchases.
Healthy and sustainable products will be key features since private label products will be trans-fat free and certified.
Lidl will have local products and will be cheaper than its competitors
90% of the assortment will be a private label and 85% of the assortment will be produced in the United States, suggesting that Lidl is trying to attract buyers looking for “made-to-measure” US goods.
Contrary to popular misconceptions, Lidl’s main buyers will position themselves more towards a mid-market buyer, which is consistent with the approach of the grocery store in the United States and other markets.
Lidl plans to open 100 stores on the east coast by 2018 and reach more than a 120 in the United States by the end of 2018.
It’s expected by the year 2023 that Lidl will have 630 stores opened in the United States, with a clear focus on suburban markets and local stores.
Lidl could generate close to $700 million in sales by the end of 2018, growing to $8,800 million by 2023, as customers begin to move away from other supermarket formats in order to become loyal in “hard discount.”