Retailing industry analyst Kantar Retail this month released an impact study on the US supermarket sector that highlights a new entry from Europe. Lidl, a no-frills grocery chain headquartered in Germany, is in business in 28 countries in Europe, is expected to enter the US market in 2018.
Similar to Aldi, another German supermarket competitor who have long since set up shop in the US, Lidl stores take a low-staff, no-frills approach to supermarket operation, displaying skids of product in aisles, letting customers take product from opened cartons. A lack of specialty areas, preferred by some other supermarket chains, creates store floor plans that are streamlined and configurations that demand less of basic space than does the average US supermarket.
Kantar sees Lidl as opening over 100 stores a year in the US, with a total of 400 up and down the east coast by 2020. The chain’s operating efficiency is touted, as a single, fully mature store could generate $14 million, or , “a lot of volume packed into a 36KSF box”. Other highlights from Kantar:
- Lidl could surpass USD2 billion in volume by the end of its second full year of operations
- By 2023, we believe Lidl could approach USD 9 billion in sales, which is more than what Wegmans does today
- Expect Lidl to have over 400 stores up and down the East Coast by the start of the next decade
East Coast Rollout Locations To Watch
The chain’s US corporate headquarters is announced as being located in Arlington County, VA. European press has put a location of the first wave of Lidl stores as Virginia Beach. Its logistics network has already put down roots with two regional distribution centers, one in Alamance County, NC and Arlington County.