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Lidl Boasts Prices Fifty Percent Less than U.S. Rivals

Lidl Boasts Prices Fifty Percent Less than U.S. Rivals


NECKARSULM, GERMANY
Monday, May 22nd, 2017

Discount retailer Lidl made waves last week when, after accelerating its U.S. rollout by an entire year, the retailer announced its first stores to be opened in mid-June. And the company continued to rock the boat when its representatives announced aims to cut U.S. food prices in half.

Reuters reports that the company is promising to offer products 50 percent cheaper than its competitors in the U.S. market—a market already in the midst of what the news source dubbed “a price war.”

Brendan Proctor, President and CEO, Lidl U.S. (Photo Source: Irish Mirror)

"This is the right time for us to enter the United States," Brendan Proctor, the company’s Chief Executive Officer, told Reuters. "We are confident in our model. We adapt quickly, so it's not about whether a market works for us but really about what we will do to make it work."

Reuters reported that Lidl and German rival Aldi have already disrupted the English retail landscape, and analysts estimate that Lidl could operate more than 330 stores in the U.S. by 2020.

Lidl Storefront

Proctor also told the news source that, while its first 100 planned stores are standalone construction projects, the company is open to the possibility of leasing preexisting stores as it grows its footprint.

Can Lidl cut prices in half? What disruptive effects will the deep discounters’ entry into the U.S. have on the already competitive market?

Deli Market News will continue to report.

Lidl US