Misconceptions Swirl Around Lidl As U.S. Debut Approaches

A Kantar retail industry analyst reports that attenders at a recent chain drug store meeting had one topic on their mind: the pending arrival of the first 20 U.S. stores of the German small-format discount chain Lidl.  He was amazed at “the level of misinformation swirling around the retailer.” Potential competitors believe, for example, that Lidl operates down-market stores, targets low-income shoppers from poor areas, and competes mostly with other discounters of its ilk, such as Aldi. In fact, however, Lidl is a mid-market retailer; its stores are austere but pleasant and attractive; shoppers represent all income levels; it underprices competition by double-digit percentages on branded items and sells high-quality private label products; and competes successfully with supermarkets and supercenters.