CNN reports that German discounter Lidl, still struggling to get a US foothold two years after first coming to the US market, has announced that “it will open up 25 new stores by next spring on the East Coast in states such as Maryland, New York, Pennsylvania and the Carolinas. Those openings and others will bring Lidl's US footprint to more than 100 stores by the end of 2020, two years behind Lidl's original schedule.”
The story notes that “the company initially had lofty goals and planned to shake up the US market by opening 100 locations within its first year. It relied on tactics similar to Aldi's to break into the market: slashing prices, offering mostly private-label brands, and emphasizing its organic food and fresh produce selections.
“But Lidl made early mistakes. Its stores were too big and too far from urban hubs, which undercut its attempt to establish itself as a convenient option, according to analysts.”
The story notes that “the company initially had lofty goals and planned to shake up the US market by opening 100 locations within its first year. It relied on tactics similar to Aldi's to break into the market: slashing prices, offering mostly private-label brands, and emphasizing its organic food and fresh produce selections.
“But Lidl made early mistakes. Its stores were too big and too far from urban hubs, which undercut its attempt to establish itself as a convenient option, according to analysts.”
- KC's View:
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I’ve said from the moment Lidl came to the US that it is playing a long game here … lots of money and patience, with no outside shareholders to worry about. The US may not be the UK, where Aldi and Lidl have roiled the marketplace. But it also may be that the US is just not be the UK yet.
