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Industry NewsHow Lidl plans to conquer the U.S. market

How Lidl plans to conquer the U.S. market

Thursday, February 23, 2017

For more than a year, German grocer Lidl has been plotting its entry into the U.S. market, a plan that includes building a prototype store in the Fredericksburg, Va., area, according to a Washington Post article.

“The company is using the space to test which details appeal to American shoppers: To hit on what kind of signage looks good dangling from the ceiling, to figure out how many aisles makes for the most efficient movement through the store,” the news article says.

Lidl operates 10,000 stores in 27 countries, and is famous for offering a limited assortment of goods, many of them private label, at ultralow prices.

The Lidl prototype store is significantly larger than its typical format. With about 21,000 square feet of shopping space, the retailer’s U.S. chief executive, Brendan Proctor, says this store is 35 per cent larger than some of the chain’s biggest stores in Europe. The company decided to go with a larger format because it thinks it will need to offer a wider array of items to thrive in the U.S. market.

The grocer’s entry into the American market could potentially “throw a disruptive curveball in a retailing category that is already scrambling to adapt to new pressures, including the growth of online shopping and competition from nontraditional rivals such as drugstores.”

Lidl is set to open 20 stores this summer in Virginia, North Carolina and South Carolina, an earlier debut than the 2018 time frame that it initially targeted. Within 12 months of opening its first U.S. stores, it is slated to have 100 locations up and down the East Coast.

Click here to read the entire article.

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