retail news in context, analysis with attitude

In the UK, the Guardian reports that the newest figures from Kantar show that discounters Aldi and Lidl have grown to the point where they together represent 10 percent of the grocery market there.

"As Kantar pointed out," the Guardian writes, "Aldi and Lidl have grown from 5% of the market to 10% since 2012; it had previously taken the duo nine years to crawl from 2.5% to 5%. It is probably now too late to prevent the discounters from claiming 15% because they are flogging expansion for all its worth. But, if the mainstream brigade wish to stop 15% becoming 20%, they will have to start throwing some punches that the opposition actually feels."

One of the things preventing the opposition - which includes companies like Tesco and Walmart-owned Asda - from doing so, the story suggests, is a desire to protect margins ... which restricts their ability to compete in a way that blunts the discounters' growth.
KC's View:
I've been saying this for months ... US retailers need to pay close attention to the mistakes that have been made in the UK by traditional retailers that have failed to compete effectively with Aldi and Lidl. Because the same thing can happen here ... and will, if they're not careful.