News Break:
LIDL PROBLEMS
LIDL PROBLEMS
Turns out Lidl isn't proving to be the runway success so many had predicted. Market share has fallen since the first stores opened in June and the company is attempting to regroup before opening more stores. I was always confused by all the predictions of Lidl annihilating traditional grocers on the East Coast, even from comments on this blog. Less than two years ago, Tesco's Fresh and Easy failed miserably on the West Coast after numerous reboots. Add to that Bottom Dollar's bust of an attempt to rule the Philadelphia market. Where are they both now? Dead and gone. While things aren't looking so dire for Lidl just yet, early sales results show they're not the traditional supermarket killer everyone was expecting.
PROGRESSIVE GROCER
Please click here to jump to the article.
SUPERMARKET NEWS
Please click here to jump to the article.
Is the one in NJ open yet? Have only been to LIDLs in Europe so cant comment on what they offer until I go to one.
ReplyDeleteNot yet but they're coming. This article on NJ.com has some details...
Deletehttp://www.nj.com/camden/index.ssf/2017/03/see_where_german_chain_is_planning_more_supermarke.html
Perhaps the question is, is this really surprising? It seems just about any new store (be it a brand new chain or just a new location of an existing one) will always get lots of people when it first opens.
ReplyDeleteSo, with the info shown (that it was high the first month, then dropped a bit and has now gone back up a bit), it might just be that the first month is an abnormality and the later figures are more the "range" they would get on an ongoing basis?
I've stopped at the Lidl that opened in Middletown DE twice, and it's just alright. Nothing to really get too excited about. It wasn't too busy both visits. The mid-atlantic is just already chocked full of stores, Lidl is just a solution that nobody was asking for. What did bug me is the way the pricing is labeled; the price is above the product, not below it, like every other store does.
ReplyDeleteALDI does both, you get used to it.
DeleteThe one in Middletown looks like it's on life support.Verry little product available in the Bakery.Produce selection cut way back and the tables are light.Mark downs visible in frozen case ,only two check outs open. I give them sux months to a year.
ReplyDeleteWOW surprising after only a few months in operation
DeleteHard to compete against Walmart, and Aldi. I think what hurts the Middletown location also is that it's somewhat off the main road...too many turns. I wonder how much business they expected.
DeleteBottom Dollar Food didn't fail - it was bought out by Aldi. Food Lion was foolish to retire Bottom Dollar as it was convenient for people who shopped on a budget. As for LIDL, I don't have one nearby so I can't tell you.
ReplyDeleteIt sure did fail. Aldi took over less than half of the Bottom Dollar locations.
DeleteALDI took over/were sold locations, they didn't buy out the Bottom Dollar chain. Much like stores took over A/P and Pathmark locations when they closed.
DeleteI just got back from Raleigh, NC, and I saw a LIDL being built there. The Lacey Twp Planning Board approved one, but so far they have not started construction. Shoprite slapped the planning board with a lawsuit to prevent LIDL from coming in. I think the jury is still out on LIDL. More and more people have been finding out about ALDI, for instance. The Press of AC just released an article about how they’re expanding. I think, as more people find out about LIDL, the better business it will do.
ReplyDeleteThere is too much competition out there to be buying knock off brands at Aldi if you ask me! If you like Tide then sure as heck you can get it on sale cheap one week at Acme then the next at S&S and the next at ShopRite. Heck you could even get it at WM or BJ’s.... it’s always on sale somewhere. My point is why would you buy Aldi’s no name crap when you can buy the well known national brand at so many retailers? The market is flooded with options, GOOD options. Lidl IS the solution no one asked for. So is Aldi if you ask me. I’d rather give my money to an American company anyway. Yes I know S&S is foreign owned. I don’t shop there.
ReplyDeleteA lot of people agree with you, that they think Aldi's no-name products can just be found at many other stores. Then they give it a chance and realize that Aldi actually carries unique products not available at other stores, such as cookies from Holland and chocolate from Germany. It's easy in, easy out, which you definitely don't have at Shoprite, Costco, or Walmart. I was at Aldi today in Toms River, and it was insanely busy. I was a LIDL shopper in Münster, Germany. Once people start realizing how different LIDL will be, you'll see.
DeleteThis comment has been removed by the author.
DeleteI'm going to expand on what I originally said. You are correct that, for instance, I can go to ShopRite and buy (insert brand) of (insert product) on sale. You know what else I can do? Go to Aldi and buy a product of comparable quality for less than the on-sale price EVERY DAY!
DeleteI'll give you an example. Aldi, every day of the year, has 8 ounce blocks of various cheeses for, I believe, $1.49. I'll admit, I'm not particularly picky when it comes to cheap cheese. However, that is considerably less than even the ShopRite brand when it is advertised on sale.
They have deals like this all over their store. Another example is vanilla wafers. Right now, an 11 oz box of store brand is $2.29 at my ShopRite. The same box at Aldi is $1.49.
As dougbalt mentioned, they also have products you just can't get anyplace else.
I do like supporting American companies. But you know what I like more? Keeping money in my pocket.
Actually, the current trend among consumers,is trending from name brands to private label.Tge quality is much better then it was ten years ago and retailers like Walmart. Are pushing tbeir Great Value Brand, verry successfully.
DeleteI've been to Lidl stores in Europe so when it was announced they were bringing them here to the U.S., I was a little surprised. I didn't think there was enough room in this market for another Aldi-like grocer and I'm thinking the market has made the same decision.
ReplyDeletePerhaps the format will work well in urban areas and others with low income demographics? I don't see the format working in the suburbs where shoppers are looking for more Whole Foods, Trader Joe's, and Wegmans stores that offer the opposite of cheap and basic. It could also be a matter of there simply being way too many grocery options in any given area.