Lidl is coming...

Discussion in 'Economics' started by Michael J. Fletcher, Mar 17, 2017.

  1. Mtrader

    Mtrader

    First rule: never underestimate your enemy.

    Lidl has invested 5 billion euro last year in opening new stores. They have over 10,000 stores and turnover was 100 billion euro. They are now the biggest retailer in Europe.
    It will not take years to achieve something big in the US. They are more agressive then Aldi.
    And the Schwarz group has a lot of money.
     
    Last edited: Mar 17, 2017
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  2. Xela

    Xela


    Indeed ... speaking from Europe, here, my expectation of Lidl would be that they'll achieve something big in the US, and much more quickly than many people will expect.
     
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  3. Mtrader

    Mtrader

    In 2016 they were number 6, in 2017 they were already number 4.

    small.jpg

    They grow very aggressively. In 2012 sales were at 38 billion; in 2017 sales will be over 100 billion, so tripling sales in 5 years time.
     
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  4. dealmaker

    dealmaker

  5. Xela

    Xela


    That's part of the reason why people will underestimate Lidl's prospects, I'd think. ;)
     
  6. Mtrader

    Mtrader

    Walmart came to Europe and left too.
    I think the Tesco model is different from the Lidl model. So result might be different too.

    One loser does not mean that they all will be losers. Aldi did not leave. And management and business model from Lidl is much better.

    We will see. Future will tell.

    In the very late 90's consultants told Lidl there were two huge growing markets:
    • the very rich
    • the "poor"
    Prediction was that the middle class would suffer and shrink. Lidl took the bet and become retailer for the "poor". It was a big hit till now.
    In the US the middle class has the same problems, so the recipe might work there as well.
     
    Last edited: Mar 17, 2017
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  7. Lidl in Europe is not for the poor. (Aldi perhaps, but even they are making an effort to offer more branded goods lately)
    I just shopped at Lidl yesterday. They have great Irish porterhouse steaks, foie gras, gravd lax, good quality fruit and vegetables. Nice wines (They have Saint Emilion Grand Cru and Italian Barolo on stock at all times in my local shop). So definitely not budget.
     
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  8. Mtrader

    Mtrader

    With "poor" I mean what was before the middle class, not the real poor. That's why I wrote "poor" and not poor. They are lower priced then Carrefour, Delhiaze, Albert Hein... So their clients are shifting to Lidl. Lidl to me is better than Aldi.
    Their Irish meat is indeed delicious, not cheap, but cheaper then in other shops for the same quality.
     
    #10     Mar 18, 2017
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