The German grocery chain, Lidl, known as a discount store plans to grow in the US. Though it has faced numerous challenges it is aiming to be in lines similar to German competitor Aldi’s success.
Lidl said on Friday that it is planning to start operations of 25 new stores by the next spring on the East Coast. The target regions are in states of New York, Maryland, Carolinas, and Pennsylvania. These stores will bring the Lidl’s footprint to almost 100 stores by the end of 2020.
Ceo of Lidl, Johannes Fieber, said that they are committed towards long-term growth in the United States. He is hoping these new stores to be a part of their US expansion plan.
The company is a global grocery giant with almost 10,500 stores across 29 nations. However, as opposed to Aldi, which is its German rival, which is already present in the U.S. The company is now planning to enter the market.
Lidl’s has mixed reviews since the launch of its first US stores in 2017. The company originally had disdainful goals and was planning to wobble up the US market. The plan was opening 100 locations within the initial 12 months. It was replicating the strategies used by Aldi’s to make their presence in the market. Lower prices, private-label brands, and more of organic food and fresh produce selections was the plan.
However, there were some mistakes, like too big and distance stores from urban locations. The distance further led to reducing walk-ins. An analyst mentioned that the major failure was in a real estate strategy.
Lidl was recently adjusting its plan and reduce the speed of store openings. The company appointed a new CEO in the US last year signed a partnership with Boxed for an online home delivery pilot.
Presently, the company is focusing on launching smaller stores in the areas of high traffic. It lately launched three stores in Atlanta. The company also overtook some of the best supermarkets in the city of New York and New Jersey. It is likely to re-brand these stores as Lidl. Lidl’s biggest impact in the United States is reducing prices across various supermarkets.