I can remember a session I attended at Fruit Logistica in Berlin back in 2013, where panelists said Lidl was “too chicken” to tackle the U.S. market. Fellow German company Aldi Sud had too strong of a foothold in our market, they said.
Fast forward a few years and it appears that Europe’s largest discounter is making a go of it, and they’re going to have to act fast to snap up market share before Aldi, Sprouts Farmers Market and the like can swoop in on a relatively untouched market on the East Coast.
Where Lidl is dropping its first nine stores – North Carolina, South Carolina and Virginia – doesn’t have a strong presence of this type of limited assortment “discount” grocers like Battavia, Ill.-based Aldi – yet.
Sure, there are some Save-A-Lots in the region, but in this context, I’d put Lidl – with its European newness – in a more “upscale” segment of these types of grocers, right up there with Phoenix-based Sprouts Farmers Market, but maybe not quite 365 by Whole Foods Market.
Sprouts and its two look-a-likes, Downers Grove, Ill.-based Fresh Thyme Farers Market and Boulder, Colorado-based Lucky’s Market haven’t really expanded into this region much – yet.
And I’m stressing YET because Sprouts is encroaching on this market. Publix is making its way up the East Coast, and even Wegmans is expanding down this way.
Lidl’s most recent news release promises U.S. consumers a way to “Rethink Grocery Shopping” via “top quality goods and groceries at up to 50% less than other supermarkets.”
They promise, according to a release:
- Newly-Built, Beautiful Stores and Easy-to-Shop Layouts: All Lidl stores opening this summer will be newly constructed facilities, featuring a manageable, easy-to-shop layout of 20,000 square feet with only six aisles.
- Fresh Baked Goods: Customers will be greeted each day with the smell of Lidl’s top-quality breads and pastries, which are baked fresh throughout the day. A bakery will be located at the entrance of each store.
- Healthy, Sustainable Choices: Lidl is committed to offering a wide range of healthy and sustainable options. All fresh and frozen seafood in Lidl’s everyday assortment will be certified sustainable by either the Marine Stewardship Council (MSC), Best Aquaculture Practices (BAP), or the Aquaculture Stewardship Council (ASC). Lidl’s high quality private label products will not have certified synthetic colors, added MSG or partially hydrogenated oils (PHOs) containing trans fats.
- Organic and Gluten-Free Options: Lidl will carry a variety of organic and gluten-free items including organic fruit, vegetables, meat, dairy, and packaged food items, which will all be available at the lowest possible prices.
- Lidl’s Top Quality Products: About 90 percent of the high quality groceries available at Lidl will be exclusive brand products. Each product on Lidl shelves will be rigorously tested to ensure that it meets our high quality standards. Several items have already won acclaim in the United States, including award-winning cheeses recognized in the 2017 Los Angeles International Dairy Competition, and a range of baby products that have earned the Parent-Tested, Parent-Approved seal of approval.
- Lidl Surprises: Lidl offers an ever-changing selection of non-food products each week that will be in stores for a limited time. The selection will include fitness gear, small kitchen appliances, toys, and outdoor furniture, among other non-food items.
- Store Hours: Lidl is open during prime shopping times. Stores will be open from 8 a.m. to 9 p.m. Monday-Sunday.
I’ve been to several Lidls in Europe, in Germany, Italy and Switzerland, and found them strikingly similar to Aldi in format, size and selection.
From what I’ve seen, I’m expecting the U.S. version to be a bit of an upgrade. We have a little over two weeks to see how they’re really going to look.