European Expansion for Discounters

Lidl may be headed for the no.1 spot in the European small format discount market by 2012, according to 'European Grocery Retailing 2004', the latest report from food and grocery specialists IGD. Lidl is establishing operations in fifteen European countries in which rival Aldi has no presence.

Like Aldi, Lidl is based in Germany. At present, IGD estimates that Aldi has 9.4% of the German market (4050 stores) and Lidl has 4.9% (2522 stores), but Lidl already achieves higher sales from other European markets than Aldi (EUR 9 billion verses EUR 8 billion). Both retailers have been expanding rapidly into France and Western Europe but Lidl is also moving into Central and Eastern Europe.

There are 15 markets where Lidl is established or establishing itself and Aldi has no presence, including Denmark and the six Central and Eastern European countries Hungary, Estonia, Latvia, Lithuania, Croatia and Slovenia. IGD says Lidl are also stronger than Aldi in France, Spain and Ireland. Aldi, meanwhile, is targeting Switzerland and Norway (as is Lidl) and is expanding further afield, in Canada and New Zealand. IGD therefore predicts that Lidl is likely to overtake Aldi in European discount retailing taking the number one position by 2012.

IGD Chief Executive Joanne Denney-Finch says the report illustrates the pace of change in the dynamic European Grocery retailing sector: 'we are seeing a dramatic change world-wide, as the discounters move away from their core lines. In Europe, they have gone from a focus on dry goods to stocking fresh meat and produce, ready meals and healthy eating alternatives, really helping to broaden their consumer appeal...

'The discounters' combination of low price and convenience is clearly proving irresistible and we anticipate this will fuel their continued growth. They now list key brands, are increasing their marketing emphasis and are introducing customer service initiatives, such as debit cards and longer opening hours'.

Lidl is defined as the Lidl division of Lidl & Schwarz Europe, i.e. excluding Kaufland discount hypermarkets. The above German Grocery Market shares are based on IGD estimated grocery market size of EUR 202.7 billion. The company's web site is at www.igd.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

• IGD
• All news