retail news in context, analysis with attitude

Reuters reports that German discounter plans to open its first US stores on June 15, and that the company is saying that "its products would be up to 50 percent cheaper than competitors, which are already caught up in a price war."

According to the story, "Lidl said it would open its first 20 U.S. stores in North Carolina, South Carolina and Virginia, starting on June 15. Eighty more will follow in the United States within the first year ... Analysts estimate the company will have more than 330 U.S. stores by 2020. The stores will be 20,000 square feet in size and have only six aisles. The retailer's in-house brands will account for 90 percent of the products."

"This is the right time for us to enter the United States," says Lidl US CEO Brendan Proctor. "We are confident in our model. We adapt quickly, so it's not about whether a market works for us but really about what we will do to make it work."
KC's View:
I've said it before and I'll say it again. Lidl is going to make a lot of noise, and likely will influence consumer expectations about price in excess of its actual market share achievement. This is not to be taken lightly.