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Don't count Lidl out in the U.S. just yet

Lidl’s entry into the U.S. had a smaller impact on the market than expected, but new research shows that it established a strong price reputation from the opening of its first store.  This is one of the findings from a Brick Meets Click analysis of data on 30,000 shopper visits to Lidl stores collected by Service Management Group.

lidl logo “Lidl may not have accomplished everything it wanted to in its first year, but it did receive credit for the low prices that are expected from a hard discount operator,” said Bill Bishop, author of the analysis.

The 30,000 surveys were conducted from June 2017 through December 2017 with shoppers at 40 different Lidl stores in Virginia, North Carolina, and South Carolina, using SMG’s proprietary market intelligence tool, BrandGeek, which combines consumer feedback and behavioral data.

Advertising was the big reason shoppers first visited a Lidl store, but over time the top two reasons changed to "previous positive experience" and "quality of the product."

“Lidl still needs to find ways increase same store sales and improve their financial performance,” explained Bishop.

This can be done by:

*        Maintaining low product costs even though the company be operating fewer stores than originally projected.

*        Getting credit for the speed/convenience of shopping their tightly edited assortment and smaller footprint stores.

*        Driving trial and build trust in its own label products with strong retail marketing.

“Once it does this, we expect Lidl to position itself as the store with prices as good as Aldi but with a bigger selection of fresh products and national brands,” said Bishop. 

The complete analysis — including what these findings mean for the rest of the grocery retail industry — can be found HERE.