Amidst speculation that a hard discounter like Lidl or Aldi could eventually enter the Canadian market, a recent study by Katrijn Gielens, associate professor of marketing at UNC Kenan-Flagler, examines their price effect on the US market.
– The cheapest overall baskets were found consistently at Lidl.
– The price of individual products demonstrates the price-cutting effect of Lidl’s presence.
– The dollar savings for shoppers in markets where Lidl is present are substantial.
– Lidl’s competitive price-cutting effect is more than three times stronger than Walmart’s effect.
– The price reaction to Lidl’s presence varies considerably across competing supermarket chains.
The full study can be read here.