How did you hit on that? How do you do?
Share now Americans are down with a discount. The economy in America's southeast was booming, archrival Aldi had established a successful Teutonic beachhead, and research predicted that the two German brands would gobble up market share from US grocery chains.
The US stores are each about 20, square feet, about 30 percent larger than Lidl's shops in Europe. The US outlets are also more airy and bright, thanks to an architect's soaring design featuring floor-to-ceiling windows.
Back at headquarters in Neckarsulm, a small town near Stuttgart, no one had known online giant Amazon would announce it had purchased upscale supermarket chain Whole Foods one day after the first Lidl stores opened.
Amazon said that it would slash prices at Whole Foods, which has stores and is sometimes dubbed "Whole Paycheck. According to the research firm inMarket, which tracks cellphone data to gauge customer foot traffic, Lidl stores took an initial 2.
Retail giant Walmart's share of foot traffic fell 2 percent -- a possible indication that Lidl was poaching customers as intended. But traffic to Lidl died down in July and August, eventually falling to 1. This caused concern at home in Germany.
Officials at Schwarz Gruppe, Lidl's parent company, were quoted by trade publication Lebensmittel Zeitung as saying that sales at some Lidl US outlets were "frighteningly weak.
US trade paper Supermarket News called that executive shuffle an example of Lidl's "paramilitary style of management. Lidl has now debuted 39 of the stores it plans to open by next June. Despite the slow start, supermarket experts are optimistic for the two German supermarket brands in the US.
Discount stores used to be associated with the bottom end of the market, but thanks to the success of Costco, are now a lucrative segment. And that's where Aldi and Lidl are strong. Haggard, 90 percent of merchandise sold in Lidl's US stores is "private-label," meaning the ketchup or soup is from the Lidl brand rather than Heinz or Campbell's.
Costco, for example, has its own in-house brand Kirkland, and Trader Joe's sells mostly private-label goods in its stores.
These stores are called hard discounters: They sell fewer items -- about 1, items in each store, compared to the 30, items in a typical supermarket -- but at much lower prices than in conventional stores, often 30 percent or more.
Waiting for the sun to shine. The consultancy added that North American consumer tastes have evolved so that Aldi's customers are more suburban and affluent than discount shoppers used to be.
Lidl and Aldi are especially good at driving down costs in making private-label goods and selling them at very low margins, and then at using the economies of scale from the higher volumes to push down costs even further. That means offering surprises like barbecues, or affordable wine that is still drinkable having been curated by an in-house sommelieror even a clothing line designed by German fashion model Heidi Klum, who became a household name in the US on the competition reality shows "Project Runway" and "America's Got Talent.
Katharina Kort is a correspondent for Handelsblatt in New York. To contact the authors:Strategic Consulting, including business plan & sales strategy development. Advising new businesses on formation of corporations and business structures, drafting privacy policies and structuring commercial vetconnexx.com: Department Manager (Filialleiter) .
KAUFLAND introduces premium private label Schwarz Group's big-box banner Kaufland has launched a premium grocery private label line called Exquisit in its domestic German market.
The range comprises items including specialities from France, Switzerland, Belgium and Austria. Zu Gebrauchsgütern wären z.B. Möbel, Mode und Geräte der Unterhaltungselektronik zu zählen, zu Verbrauchsgütern etwa Lebensmittel oder Körperpflegeprodukte. The German food publication Lebensmittel Zeitung speculates that a rapid expansion of Lidl could be expected and that the company could acquire units from Kmart, Food Lion, Sav .
Lebensmittel Zeitung, a German trade journal, said Aldi South, which runs Aldi’s UK and Irish businesses, might go online in other countries including Germany, while sister company Aldi North.
Englewood, NJ – June 27, – A new line of USDA organic oils from France will be presented at the Summer Fancy Food Show (Booth ) by the French company Bio Planète, Europe’s first purely organic oil mill, in collaboration with importer and distributor French Feast. The oils grow out of.