It was revealed last month that Lidl is seeking $9.5 million in Pennsylvania redevelopment grants for six stores, three of which are planned for Philadelphia - South Columbus Blvd. in South Philly, Butler Street in Port Richmond, and Roosevelt Blvd. in Northeast Philly.
The three other stores Lidl is seeking grants for are in Dover Borough (York County), Easton (Northampton County) and Ridley Township (Delaware County). The Ridley location opened last year and was Lidl's first store in the state.
In a story published on Philly.com, Lidl Spokesperson Will Harwood explained that Lidl often works with local government agencies and applies for available investment programs when they expand into new markets, including those that require remediation or rehabilitation.
The $9.5 million would come from Pennsylvania's Redevelopment Assistance Capital Program, which is designed to support redevelopment projects that officials deem capable of having a big economic impact. Six million would be for the three Philadelphia sites.
Showing posts with label Lidl. Show all posts
Showing posts with label Lidl. Show all posts
Monday, May 6, 2019
Tuesday, February 12, 2019
Lidl planning to take part of vacant Acme in Lansdale, PA
Lidl presented plans to Towamencin Township last month to take over about half of the former Lansdale, PA Acme that closed last summer. Acme occupied about 60,000 square feet.
"We're definitely looking at opening this year, this calendar year. That's the hope," said Sam Kachidza, Real Estate Manager of Acquisitions for Lidl U.S.
The site is just two miles from two existing full-service supermarkets - Giant and ShopRite, and two miles from Ralph's Corner Shopping Center, where Aldi is under construction.
So far Lidl has one store open in Pennsylvania - on MacDade Boulevard in Folsom, and the company is actively looking for more. Lidl stores in Lower Providence Township and Royersford are also planned.
"We're definitely looking at opening this year, this calendar year. That's the hope," said Sam Kachidza, Real Estate Manager of Acquisitions for Lidl U.S.
The site is just two miles from two existing full-service supermarkets - Giant and ShopRite, and two miles from Ralph's Corner Shopping Center, where Aldi is under construction.
So far Lidl has one store open in Pennsylvania - on MacDade Boulevard in Folsom, and the company is actively looking for more. Lidl stores in Lower Providence Township and Royersford are also planned.
Friday, December 28, 2018
Grocery Outlet to open 40 new stores in 2019
Grocery Outlet, the California-based discount food retailer, has quietly ramped up its growth as competitors like Aldi and Lidl are making much more industry noise. Earlier this year the company opened its 300th store, and 40 new stores are expected for 2019.
Grocery Outlet, which purchased Amelia's stores in Greater Philadelphia a few years ago, operates stores in Pennsylvania, Oregon, Washington, Idaho, Nevada and California. Southern California represents their largest region, with 70 locations.
According to a recent story in Supermarket News, Grocery Outlet offers 40% - 70% off nationally recognized brands. They purchase from manufacturers that have excess inventory and pass their savings on to consumers. As a result of this opportunistic approach, the lineup of products often varies with each shopping trip. And since the stores are locally owned (not franchised), the product lineup may also vary from store to store. Each owner has the ability to choose what products they want to buy and sell.
"People love to save money, there's no question," said Phil Lempert, founder and editor of SupermarketGuru.com. "If you can combine that with a treasure hunt, from a consumer standpoint, it's great."
Although the products may differ from week to week, Grocery Outlet's inventory is predominantly made up of national brands, unlike Aldi and Lidl, who only offer a limited amount of national brands.
Recently Grocery Outlet has addressed its millennial customers, who are often their most vocal shoppers. Millennials seek both value and high quality, as well as an understanding of 'the experience of the food," according to Vice President of Marketing Layla Kasha. As a result, Kasha describes a new store in Los Angeles as "modern and hip, focusing on clean lines and a design aesthetic that matches the surrounding area."
Nationally, the model seems to be working, as Grocery Outlet recently surpassed $2 billion in annual sales, according to Supermarket News.
Grocery Outlet, which purchased Amelia's stores in Greater Philadelphia a few years ago, operates stores in Pennsylvania, Oregon, Washington, Idaho, Nevada and California. Southern California represents their largest region, with 70 locations.
According to a recent story in Supermarket News, Grocery Outlet offers 40% - 70% off nationally recognized brands. They purchase from manufacturers that have excess inventory and pass their savings on to consumers. As a result of this opportunistic approach, the lineup of products often varies with each shopping trip. And since the stores are locally owned (not franchised), the product lineup may also vary from store to store. Each owner has the ability to choose what products they want to buy and sell.
"People love to save money, there's no question," said Phil Lempert, founder and editor of SupermarketGuru.com. "If you can combine that with a treasure hunt, from a consumer standpoint, it's great."
Although the products may differ from week to week, Grocery Outlet's inventory is predominantly made up of national brands, unlike Aldi and Lidl, who only offer a limited amount of national brands.
Recently Grocery Outlet has addressed its millennial customers, who are often their most vocal shoppers. Millennials seek both value and high quality, as well as an understanding of 'the experience of the food," according to Vice President of Marketing Layla Kasha. As a result, Kasha describes a new store in Los Angeles as "modern and hip, focusing on clean lines and a design aesthetic that matches the surrounding area."
Nationally, the model seems to be working, as Grocery Outlet recently surpassed $2 billion in annual sales, according to Supermarket News.
Wednesday, November 28, 2018
Lidl to open first store in PA
Lidl announced that its first Pennsylvania store will open next week in Folsom. The company, which operates about 10,000 stores in 29 countries, has 59 operating U.S. stores throughout New Jersey, Delaware, Maryland, Virginia, North Carolina, South Carolina and Georgia.
Lidl announced earlier this month that it plans to purchase 27 Best Supermarkets, mostly in New York.
In Pennsylvania, Lidl also has plans for stores in Philadelphia and Montgomery County.
Lidl announced earlier this month that it plans to purchase 27 Best Supermarkets, mostly in New York.
In Pennsylvania, Lidl also has plans for stores in Philadelphia and Montgomery County.
Friday, November 16, 2018
Lidl to acquire 27 Best Market stores in New York and New Jersey
Lidl announced today that it plans to purchase 27 Best Market supermarkets in New York and New Jersey for an undisclosed amount. Twenty four of the Best Market stores are located in Long Island. The deal is expected to close early next year, and all of the acquired stores will be converted to the Lidl banner.
Lidl currently operates 59 stores in Virginia, North Carolina, South Carolina, Georgia, Maryland, Delaware and New Jersey. In addition, stores are under construction in Pennsylvania and are expected to open in 2019.
Both companies said that all Best Market employees in New Jersey and New York will have guaranteed employment opportunities with Lidl, and will be offered positions with wages and benefits equal or better than what they currently have.
Best Market opened its first store in 1994 and has grown relatively quickly. The company has opened or acquired 11 stores since 2015.
Lidl currently operates 59 stores in Virginia, North Carolina, South Carolina, Georgia, Maryland, Delaware and New Jersey. In addition, stores are under construction in Pennsylvania and are expected to open in 2019.
Both companies said that all Best Market employees in New Jersey and New York will have guaranteed employment opportunities with Lidl, and will be offered positions with wages and benefits equal or better than what they currently have.
Best Market opened its first store in 1994 and has grown relatively quickly. The company has opened or acquired 11 stores since 2015.
Tuesday, November 6, 2018
Lidl willing to lease sites, build smaller stores
Following an initial growth period that fell short of expectations, Lidl once again has a full head of steam as it searches for sites in Greater Philadelphia and beyond. When the German retailer began looking for sites a few years ago, it would only purchase property that could accommodate its 36,000 square foot freestanding prototype.
Now, with some U.S. real estate and operating experience under its belt, the company is employing a more flexible approach. In addition to buying property and self-developing, Lidl will lease space and consider smaller formats.
As reported by winsightgrocerybusiness.com, a Lidl real estate brochure being distributed in the U.S. shows a variety of store formats, including ground floor commercial spaces in urban buildings, and dark supermarket spaces in shopping centers. Store sizes range from 15,000 to 36,000 square feet.
"The brochure is tailored to the U.S. and conveys our openness to different formats and possibilities," said Lidl Spokesperson Will Harwood.
Of the 58 U.S. stores now operating, all share a similar 36,000 square foot prototype, and all were ground up construction. The company's first leased property is scheduled to open soon in Staten Island, NY.
Now, with some U.S. real estate and operating experience under its belt, the company is employing a more flexible approach. In addition to buying property and self-developing, Lidl will lease space and consider smaller formats.
As reported by winsightgrocerybusiness.com, a Lidl real estate brochure being distributed in the U.S. shows a variety of store formats, including ground floor commercial spaces in urban buildings, and dark supermarket spaces in shopping centers. Store sizes range from 15,000 to 36,000 square feet.
"The brochure is tailored to the U.S. and conveys our openness to different formats and possibilities," said Lidl Spokesperson Will Harwood.
Of the 58 U.S. stores now operating, all share a similar 36,000 square foot prototype, and all were ground up construction. The company's first leased property is scheduled to open soon in Staten Island, NY.
Friday, July 6, 2018
Young customers taking to Lidl as older shoppers return to former shopping habits
Two recent studies show how Lidl is affecting the competition, and how the retailer is taking hold with customers.
In a study called "Defending Supermarket Share When Lidl Comes to Town," Florida-based Catalina, which claims to have the world's largest database of shopper history, examined shopper behavior at 83 supermarkets within three miles of 30 Lidl stores that opened last year. The study found that although Lidl siphoned sales and customers from area grocers, these supermarkets recovered much of the losses after only a few months.
According to the study, established grocery stores initially lost, on average, 4.3% of sales and saw declines of 5% in customers and 3.6% in shopping trips after a Lidl opening. However, theses losses decreased over time.
"While Lidl had a significant effect on competing supermarkets during the first two months after its openings, that impact declined precipitously by the third month, as many trial Lidl shoppers returned to their past shopping behavior," the report said.
However, a survey conducted by global consulting firm Oliver Wyman showed that 48% of customers who tried Lidl are now shopping there on a regular basis (more than twice per month). And the survey concluded that shoppers aged 18 to 34 had a particularly high awareness of Lidl and shopped there frequently.
"What Lidl has done so far has struck a chord with younger consumers who are valuing Lidl's good private brand product quality almost as much as their low prices," said Tanja Ebner, principal in Oliver Wyman's retail and consumer goods practice.
The study also concluded the following:
In a study called "Defending Supermarket Share When Lidl Comes to Town," Florida-based Catalina, which claims to have the world's largest database of shopper history, examined shopper behavior at 83 supermarkets within three miles of 30 Lidl stores that opened last year. The study found that although Lidl siphoned sales and customers from area grocers, these supermarkets recovered much of the losses after only a few months.
According to the study, established grocery stores initially lost, on average, 4.3% of sales and saw declines of 5% in customers and 3.6% in shopping trips after a Lidl opening. However, theses losses decreased over time.
"While Lidl had a significant effect on competing supermarkets during the first two months after its openings, that impact declined precipitously by the third month, as many trial Lidl shoppers returned to their past shopping behavior," the report said.
However, a survey conducted by global consulting firm Oliver Wyman showed that 48% of customers who tried Lidl are now shopping there on a regular basis (more than twice per month). And the survey concluded that shoppers aged 18 to 34 had a particularly high awareness of Lidl and shopped there frequently.
"What Lidl has done so far has struck a chord with younger consumers who are valuing Lidl's good private brand product quality almost as much as their low prices," said Tanja Ebner, principal in Oliver Wyman's retail and consumer goods practice.
The study also concluded the following:
- Forty-six percent of Lidl customers said their primary reason to shop at Lidl was either good quality, good promotions, or fresh products. Thirty-nine percent cited low prices as their primary reason.
- Satisfaction is higher in states Lidl entered recently, as opposed to those it entered earlier, which means Lidl may have learned important lessons from earlier openings and has made adjustments.
Sunday, June 10, 2018
Lidl expands delivery via Shipt
Shipt announced last month that it has begun to offer online grocery delivery services for Lidl stores in Northern Virginia. The company said that fresh foods, household essentials and other grocery items ordered through its online marketplace can be delivered from Lidl stores in Ashburn, Fredericksburg, Manassas and Woodbridge in as soon as an hour.
In addition to the Northern Virginia communities, Lidl offers Shipt delivery in select South Carolina, North Carolina and Virginia markets.
Shipt, a wholly-owned subsidiary of Target Corp., offers delivery services to several grocery retailers.
In addition to the Northern Virginia communities, Lidl offers Shipt delivery in select South Carolina, North Carolina and Virginia markets.
Shipt, a wholly-owned subsidiary of Target Corp., offers delivery services to several grocery retailers.
Wednesday, June 6, 2018
Lidl replaces U.S. CEO
Lidl announced that it has replaced U.S. CEO Brendan Proctor less than a year after its initial expansion into America. Proctor's successor is Johannes Fieber, who most recently served as CEO of Lidl Sweden.
Although Lidl initially estimated it would open 100 stores by the end of 2018, the company currently has only 53 stores open in the U.S., according to its website. Several locations that were secured were abandoned, including many in the Greater Philadelphia market, where two stores (Middletown, DE and Vineland, NJ) are now open.
The company says it now has plans to open two stores in Philadelphia, plus three in the PA suburbs, and Lidl representatives are actively looking for more.
When Lidl first started securing locations in the U.S., it would only purchase sites and the stores were planned for 36,000 square feet. Now, after several internal staffing changes and disappointing openings, the company is preparing to open stores in the 15,000 - 25,000 square foot range, and they are open to leasing in certain markets.
Overall, Lidl operates more than 10,000 stores in 27 countries across Europe.
Although Lidl initially estimated it would open 100 stores by the end of 2018, the company currently has only 53 stores open in the U.S., according to its website. Several locations that were secured were abandoned, including many in the Greater Philadelphia market, where two stores (Middletown, DE and Vineland, NJ) are now open.
The company says it now has plans to open two stores in Philadelphia, plus three in the PA suburbs, and Lidl representatives are actively looking for more.
When Lidl first started securing locations in the U.S., it would only purchase sites and the stores were planned for 36,000 square feet. Now, after several internal staffing changes and disappointing openings, the company is preparing to open stores in the 15,000 - 25,000 square foot range, and they are open to leasing in certain markets.
Overall, Lidl operates more than 10,000 stores in 27 countries across Europe.
Sunday, May 6, 2018
Grocery store openings fell sharply in 2017
According to an annual "Grocery Tracker" report from JLL, grocery store openings dropped 28.8% in 2017 compared to the previous year. The report states that the decline reflects chains' efforts to reexamine their current footprints and rethink strategies to deal with new online and brick-and-mortar competition.
JLL said that California led the way in 2017 with 1.6 million square feet of new grocery store space. Virginia and North Carolina combined for 2.7 million square feet of new space, and Texas was described as "still one of the hottest states for grocery expansion."
Sprouts, Grocery Outlet, Aldi and Lidl were mentioned as notable chains that are expanding.
JLL's report said that investment in grocery-anchored centers grew 5.3% in 2017, and the company expects supermarkets to retain high interest as anchor tenants for shopping centers.
"It (grocery-anchored centers) was one of the only retail sectors to see growth in a year of low transaction volume," the study said. "Grocery-anchored centers remain a safe bet for investors, as overall transaction volume for retail has been down, indicating the asset remains a stable sector."
The study mentioned that the increase in smaller footprint stores is a clear trend - for more compact formats like Aldi and Trader Joe's, as well as for traditional supermarket chains and mass merchants like Walmart and Target.
"The grocers that can deliver the right in-store experience, combined with the right online pickup or fulfillment plan... are the ones that will thrive, whether their stores are 15,000 square feet with limited products or take up a footprint four times as large," said James Cook, JLL director of retail research.
JLL said that California led the way in 2017 with 1.6 million square feet of new grocery store space. Virginia and North Carolina combined for 2.7 million square feet of new space, and Texas was described as "still one of the hottest states for grocery expansion."
Sprouts, Grocery Outlet, Aldi and Lidl were mentioned as notable chains that are expanding.
JLL's report said that investment in grocery-anchored centers grew 5.3% in 2017, and the company expects supermarkets to retain high interest as anchor tenants for shopping centers.
"It (grocery-anchored centers) was one of the only retail sectors to see growth in a year of low transaction volume," the study said. "Grocery-anchored centers remain a safe bet for investors, as overall transaction volume for retail has been down, indicating the asset remains a stable sector."
The study mentioned that the increase in smaller footprint stores is a clear trend - for more compact formats like Aldi and Trader Joe's, as well as for traditional supermarket chains and mass merchants like Walmart and Target.
"The grocers that can deliver the right in-store experience, combined with the right online pickup or fulfillment plan... are the ones that will thrive, whether their stores are 15,000 square feet with limited products or take up a footprint four times as large," said James Cook, JLL director of retail research.
Friday, December 22, 2017
Lidl shifting strategy, may consider leasing, smaller stores
Lidl announced earlier this month that it is changing its real estate strategy and may now consider leasing sites, and opening stores in the 10,000 to 21,000 square foot range. Up until now the company has said it would only purchase properties where it would construct 36,000 square foot stores.
William Harwood, Lidl's director of communications, said the change in strategy is an effort to "accelerate our site acquisition along the East Coast." Harwood also noted that Lidl is looking for opportunities in urban areas where larger sites are harder to find.
Harwood claimed that Lidl is "very pleased with how customers have taken to the 47 stores we have opened over the past six months."
However, industry analysts speculate that Lidl's shift in real estate strategy may be due to disappointing results.
A report released by inMarket showed that the first Lidl stores opened in June with a 2.6% share of customer visits in the markets in which it was operating. Its share slid to 2.3% in July and 1.7% in August before rebounding in September to 1.9%. inMarket's chief marketing officer said that he will have a better feeling for the discount grocer's future once holiday traffic is analyzed.
Lidl recently backed out of planned deals in New Jersey, Pennsylvania, Virginia and Ohio.
William Harwood, Lidl's director of communications, said the change in strategy is an effort to "accelerate our site acquisition along the East Coast." Harwood also noted that Lidl is looking for opportunities in urban areas where larger sites are harder to find.
Harwood claimed that Lidl is "very pleased with how customers have taken to the 47 stores we have opened over the past six months."
However, industry analysts speculate that Lidl's shift in real estate strategy may be due to disappointing results.
A report released by inMarket showed that the first Lidl stores opened in June with a 2.6% share of customer visits in the markets in which it was operating. Its share slid to 2.3% in July and 1.7% in August before rebounding in September to 1.9%. inMarket's chief marketing officer said that he will have a better feeling for the discount grocer's future once holiday traffic is analyzed.
Lidl recently backed out of planned deals in New Jersey, Pennsylvania, Virginia and Ohio.
Thursday, November 9, 2017
Lidl opening first NJ store next week
Lidl's first New Jersey store is slated to open in Vineland next Thursday, November 16. The German retailer has stores in 28 countries, and currently has 41 stores in five U.S. states.
Several stores are slated for Pennsylvania, but none are expected to open this year.
Several stores are slated for Pennsylvania, but none are expected to open this year.
Saturday, November 4, 2017
Mixed reviews for Lidl so far
A recent story on fooddive.com reported that shoppers are giving Lidl's new U.S. stores mixed reviews. The German grocer currently has 41 stores open in five states, with plans to establish at least 100 stores from New Jersey to Georgia by next summer (although multiple sources have reported delays in store openings due to slow sales).
According to the story, shoppers have been impressed with Lidl's low prices, bakery section, organic fruit, fresh produce and wine selection. However, shoppers have complained about the merchandise mix, having to purchase shopping bags, the limited assortment of brands, inconsistent service, and items being out of stock.
According to the story, shoppers have been impressed with Lidl's low prices, bakery section, organic fruit, fresh produce and wine selection. However, shoppers have complained about the merchandise mix, having to purchase shopping bags, the limited assortment of brands, inconsistent service, and items being out of stock.
Monday, October 2, 2017
Lidl CEO reportedly concerned with U.S. performance
A German newspaper reported last week that the former CEO of Lidl Spain, Michael Arnada, would be appointed to a Lidl divisional board with oversight of the United States. According to the report, Arnada's appointment is to address Lidl CEO Klaus Gehrig's concern that the performance of Lid's 37 operating stores has been weaker than expected.
Arnada, a "systematic thinker who grew up within the Lidl system," is expected to carry out the "paramilitary" style of management that has helped Lidl grow rapidly in Europe, according to Matthias Queck, a research director at LZ Retailytics.
"Lidl wants to force success, achieving in maybe 10 years what Aldi did in more than 40," said Queck.
Lidl Spokesperson Will Harwood didn't address the executive change directly, but stated that Lidl was "delighted" with its U.S. performance so far, saying that performance has exceeded expectations.
Arnada, a "systematic thinker who grew up within the Lidl system," is expected to carry out the "paramilitary" style of management that has helped Lidl grow rapidly in Europe, according to Matthias Queck, a research director at LZ Retailytics.
"Lidl wants to force success, achieving in maybe 10 years what Aldi did in more than 40," said Queck.
Lidl Spokesperson Will Harwood didn't address the executive change directly, but stated that Lidl was "delighted" with its U.S. performance so far, saying that performance has exceeded expectations.
Sunday, October 1, 2017
ShopRite tops in New Jersey with 139 stores
A story on NJ.com last month listed the 10 biggest supermarket chains (by number of stores) in New Jersey. Here's the list.
ShopRite - 139 stores
Acme - 77
Stop & Shop - 61
Target - 44
Aldi - 42
Walmart - 29
BJ's Wholesale Club - 23
Kings Food Market - 23
Save-A-Lot - 22
Key Food - 22
Stores in New Jersey with fewer locations include Whole Foods, Trader Joe's, Wegmans, Weis Markets, and soon... Lidl.
ShopRite - 139 stores
Acme - 77
Stop & Shop - 61
Target - 44
Aldi - 42
Walmart - 29
BJ's Wholesale Club - 23
Kings Food Market - 23
Save-A-Lot - 22
Key Food - 22
Stores in New Jersey with fewer locations include Whole Foods, Trader Joe's, Wegmans, Weis Markets, and soon... Lidl.
Tuesday, September 19, 2017
Kroger drops lawsuit against Lidl
The trademark suit filed by Kroger against Lidl in July for allegedly copying its "Private Selection" generic brand name and logo has been dismissed. Both sides agreed earlier this month to dismiss the federal case with prejudice, which means the case can not be refiled.
Kroger had charged Lidl with violations of federal trademark and service mark infringement, unfair competition, dilution, and a violation of Virginia's Consumer Protection Act. The company was seeking damages of $75,000 and an order preventing Lidl from selling its "Preferred Selection" items.
It is believed that Kroger reconsidered its case when a judge ruled against the company's request for a preliminary injunction that would have prevented Lidl from using its own "Preferred Selection" logo. The judge ordered a jury trial and indicated that he was skeptical of Kroger's ability to prove its claims.
Kroger had charged Lidl with violations of federal trademark and service mark infringement, unfair competition, dilution, and a violation of Virginia's Consumer Protection Act. The company was seeking damages of $75,000 and an order preventing Lidl from selling its "Preferred Selection" items.
It is believed that Kroger reconsidered its case when a judge ruled against the company's request for a preliminary injunction that would have prevented Lidl from using its own "Preferred Selection" logo. The judge ordered a jury trial and indicated that he was skeptical of Kroger's ability to prove its claims.
Kroger scraps long-term growth targets, plans to invest in pricing and tech
Kroger announced earlier this month that it has scrapped the long-term earnings-per-share growth targets that it established in 2012. Rather, the company plans to invest in pricing and technology amid increased competition from Walmart and Amazon, as well as Aldi and Lidl.
"We are re-prioritizing and accelerating investments in our 'Customer 1st Strategy' in order to anticipate and meet rapidly evolving consumer demands to shop with us for anything, anytime, anywhere," said Kroger CEO Rodney McMullen. "Our transformation is all about redefining the customer experience."
Although the company will release more details at its next investor conference, McMullen revealed that Kroger plans to invest in a store-wide space optimization initiative to spur sales and growth, and would continue to make investments in price.
"We are re-prioritizing and accelerating investments in our 'Customer 1st Strategy' in order to anticipate and meet rapidly evolving consumer demands to shop with us for anything, anytime, anywhere," said Kroger CEO Rodney McMullen. "Our transformation is all about redefining the customer experience."
Although the company will release more details at its next investor conference, McMullen revealed that Kroger plans to invest in a store-wide space optimization initiative to spur sales and growth, and would continue to make investments in price.
Wednesday, August 9, 2017
Walmart reacting to Lidl with aggressive pricing
Reports state that Walmart is reacting "quickly and aggressively" to Lidl's entry into the U.S. market. According to its website, Lidl now has 21 stores open in three states - North Carolina, South Carolina and Virginia - with plans in the next year for as many as 100 more in states from New Jersey to Georgia.
Since its first U.S. stores opened in June, Lidl has been hailed as the low price leader along with rival Aldi. But according to Rupesh Parikh, an analyst at Oppenheimer & Co., "Walmart is being really aggressive in terms of watching what Lidl, and presumably Aldi, are doing, and you can tell they are in a fight and not willing to give up customers."
"We found Walmart prices on like-for-like items were very compettive with both Lidl and Aldi," Parikh said.
Parikh also reported that several other retailers in current Lidl markets were reacting with lower prices, including Food Lion, Family Dollar, Dollar General and Target. The most aggressive pricing by all the food retailers has been in the private label category, which Parikh believes could lead to higher margins on other products in order to keep overall profits from falling.
Lidl's next U.S. market is likely to be Texas, where the German company recently opened a number of offices.
Since its first U.S. stores opened in June, Lidl has been hailed as the low price leader along with rival Aldi. But according to Rupesh Parikh, an analyst at Oppenheimer & Co., "Walmart is being really aggressive in terms of watching what Lidl, and presumably Aldi, are doing, and you can tell they are in a fight and not willing to give up customers."
"We found Walmart prices on like-for-like items were very compettive with both Lidl and Aldi," Parikh said.
Parikh also reported that several other retailers in current Lidl markets were reacting with lower prices, including Food Lion, Family Dollar, Dollar General and Target. The most aggressive pricing by all the food retailers has been in the private label category, which Parikh believes could lead to higher margins on other products in order to keep overall profits from falling.
Lidl's next U.S. market is likely to be Texas, where the German company recently opened a number of offices.
Friday, July 28, 2017
Kroger files suit against Lidl over private label concerns
Kroger filed a lawsuit against Lidl last month, claiming that in it's new U.S. stores, Lidl copied its Private Selection private label and was profiting from consumer confusion between the similar-sounding and similar-looking packages. In the lawsuit, Kroger sought a preliminary injunction that would prevent Lidl from selling its Preferred Selection products, as well as monetary damages.
After listening to testimony earlier this week from both parties, a judge ruled that the lawsuit would go to trial early next year, and that in the meantime, Lidl could continue offering its private label products.
In response to the suit, Lidl has argued that other Kroger competitors - including Safeway and Aldi - also incorporate versions of the word "Select" in their brands.
"The packaging, logo, and branding of the Lidl versions of these products - including pasta sauce, jam, ice cream, pizza, and cookies - is often more distinct from the Kroger offering than several of Kroger's other competitors," claimed a Lidl spokesperson.
After listening to testimony earlier this week from both parties, a judge ruled that the lawsuit would go to trial early next year, and that in the meantime, Lidl could continue offering its private label products.
In response to the suit, Lidl has argued that other Kroger competitors - including Safeway and Aldi - also incorporate versions of the word "Select" in their brands.
"The packaging, logo, and branding of the Lidl versions of these products - including pasta sauce, jam, ice cream, pizza, and cookies - is often more distinct from the Kroger offering than several of Kroger's other competitors," claimed a Lidl spokesperson.
Acme lowering prices
According to reports, Acme is advertising "thousands" of new lower prices in sales flyers released this morning. The price breaks come amidst the continued expansion of Aldi and ahead of Lidl's anticipated Greater Philadelphia store openings. Aldi is known as grocery's low price leader (lower than Walmart!), and reports indicate that Lidl's new stores in North Carolina and South Carolina feature prices on par with Aldi.
Acme's campaign is one of the first major shake-ups since Jim Perkins returned to his role as president. In Perkins' previous tenure as president, he used lower pricing to help turn the company around.
Sources have told Supermarket News that some of the A&P stores acquired by Acme in 2015 have not performed as well as expected.
Acme's campaign is one of the first major shake-ups since Jim Perkins returned to his role as president. In Perkins' previous tenure as president, he used lower pricing to help turn the company around.
Sources have told Supermarket News that some of the A&P stores acquired by Acme in 2015 have not performed as well as expected.
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