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Retailers gear up for Lidl
July 15, 2017
Source: Boomers and Millennials
Lidl has finally landed in the U.S. and grocery retailers are gearing up to meet the challenge. Europe’s largest grocery retailer, with its powerful store brands program, is opening its first nine stores this month in North Carolina, South Carolina and Virginia. The retailer plans to open100 stores along the East Coast during its first year. Wal-Mart, Food Lion and Aldi will feel the initial impact of Lidl’s entry. Of the first 20 sites Lidl is to open this summer, six will open near a Wal-Mart Supercenter and two more Lidls will compete with Wal-Mart Neighborhood Markets. Aldi, which often has stores near a Wal-Mart, will also find itself nearby several Lidl sites, as will Food Lion. Analysts say Wal-Mart is conducting extensive price tests to make sure it can compete with Lidl’s everyday low pricing. Aldi isn’t so worried about its pricing but is focusing on making its stores more attractive. Food Lion’s parent company, AholdDelhaize, has competed against Lidl in Europe and officials say they understand how to compete against the discounter. Dick Boer, Ahold Delhaize CEO said he expects Lidl will open 20 to 25 stores that will compete with Food Lion stores this summer and these Food Lions will be ready for the competitive battle. “We know exactly where they will come,” he said. Even the warehouse clubs are getting ready. Costco CEO Richard Galanti told analysts he isn’t too worried about Lidl: “We’re asked a lot about Lidl coming into the East Coast. They’re going to take share, but they’re going to take share from everybody else a lot more than they can take share from us.” Follow the link to watch video: http://www.plmalive.com/Jun17
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