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.

Bottom Dollar to open 8 more stores in New Jersey

About a month after Bottom Dollar opened 14 new stores in the Pittsburgh, PA and Youngstown, OH markets (see "related blog posts" below), the company announced yesterday that it would open eight new locations in New Jersey. The new stores will all be in the Central and Southern part of the state.

New stores opening Friday, March 2
Trenton
Cinnaminson

New store opening April 13
Bordentown

Future stores
Edgewater Park
Bellmawr
Woodbury
Mt. Holly
East Windsor

As of Friday's openings, Bottom Dollar will be operating seven stores in New Jersey, 35 in Pennsylvania and three in Ohio.

Back in December, Bottom Dollar's parent company, Delhaize Group (Food Lion, Hannaford Bros.), said it is looking to add 450 new discount grocery stores worldwide over the next five years, "hundreds" of which would be in the United States.

Related blog posts:
Delhaize to eliminate Bloom, open 7 Bottom Dollar stores this week (1/23)
Food Lion closing 126 stores, including 2 in PA (1/12)

Bottom Dollar confirms 14 stores for Pittsburgh

Rumors have swirled about Bottom Dollar's expansion to Pittsburgh (see my July 11 blog post: Bottom Dollar planning at least 9 stores in Pittsburgh), and now Delhaize America has confirmed it, according to a report in the Supermarket News. Bottom Dollar said 14 stores will open in the Pittsburgh and Youngstown, Ohio markets, and approximately 600 jobs will be created.

The store, founded in 2005 in North Carolina, now has 47 locations in five states. The Greater Philadelphia market (including the Lehigh Valley) currently has 16 stores, 14 of which are in Pennsylvania.