Who is Lidl and Why are They Walmart’s Biggest Competition?
It only makes sense for Walmart to have expanded its business overtime to better accommodate omnichannel consumers. They began with building an e-commerce strategy. Today, the big box retail chain is known to many shoppers as a place to do everything, from getting a change of tires, to picking up a new outfit, to shopping for groceries. The all-inclusive supercenter has it all, including worldwide distribution. When it comes to online sales, Amazon has been Walmart’s biggest competition for quite some time now. However, with grocery sales making up 50% of their revenue, one particular newcomer to the U.S. market should be catching the retailer’s eye, and with good reason.
Of course, lower-cost grocers have been around in the United States for quite some time, dating back to the 1970s. Known for their affordable prices, and no frill foods, they are the go-to for budget-conscious consumers. While locations may have been sparse to start, over time, these grocers have begun branching out and drawing consumers away from larger grocery chains. One such retailer, Aldi, has become appealing to shoppers, especially now that they’ve added more organic choices to their assortment of goods. As per Retail Dive, “Aldi is in the midst of what it calls an accelerated expansion plan that will expand its U.S. footprint to nearly 2,000 stores by the end of 2018, an increase of almost 50% in five years.” Aldi, and other grocers like it, are poised to continue growing, all while maintaining their low prices. As Walmart is learning, these relatively old yet “new” kids on the block are ready to poach both customers and revenue from the megastore.
Who is Lidl?
As the market opens, newcomers will always be there to step in. Meet Aldi’s biggest competitor, Lidl, a grocery, home goods and apparel retailer often referred to as the “German version of Walmart”. Lidl has 10,000 stores in 26 countries across Europe and more than 230,000 employees. The retailer also plans to open several stores in the United States by 2018, all along the East Coast — from New Jersey to Georgia. Of course, what consumers find most attractive about Lidl is their prices, which are set to be around 30% lower than what Walmart offers its customers.
With the Lidl invasion set for 2018, now is the time for Walmart to adjust their competitive analysis goggles. Preparation for the next 24 months should include overall price adjusting, as well as the acknowledgment that there is more competition out there than just Amazon.
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