In recent years, the German discounter Lidl has been on a tear in the United States, growing from about 60 stores in 2015 to nearly 200 now. The company is planning to have about 400 stores by the end of next year.
Lidl’s arrival has been accompanied by intense price competition and store closures by its rivals. Walmart, the nation’s largest grocer, is spending billions of dollars to remodel its stores and lower prices.
Kroger, the nation’s second-largest grocer, is also renovating stores and has started an online delivery service. But it has been forced to close some locations.
The pressure from Lidl has been particularly acute for regional supermarket chains like Harris Teeter, which was acquired last year by the German grocery giant Kaufland.
Did Lidl buy shoppers?
The company has attracted bargain-hunting shoppers, many of whom are low income. It has also benefited from a shift away from traditional Supermarkets among millennials and Gen Z shoppers, who are more likely to buy groceries online or from smaller format stores.
In conclusion, Lidl’s expansion into the United States has been successful in large part due to their appeal to budget-conscious shoppers. Additionally, they have tapped into a trend among younger generations of shoppers who prefer smaller format stores or to buy groceries online.
