retail news in context, analysis with attitude

The Newark Star Ledger reports that German discounter Lidl, which said earlier this year that it planned to open 100 store sin the US by the end of 2018, has “hit the brakes” on some of the proposed locations because of disappointing traffic and sales in its early units.

Stores that were planned for states including New Jersey, Ohio, Pennsylvania, and Virginia have been put on hold, the story says.

According to the Star Ledger, “Lidl's American debut began strong, drawing 11 percent of consumer visits to traditional grocery stops in nine markets in Virginia, North Carolina and South Carolina in June, according to marketing firm inMarket. By August, their share in those markets had dropped below 8 percent. Industry experts say Lidl's competition is figuring out how to fight back against the vows of lower prices and superior products from the newcomer.”
KC's View:
I suspect that one of the things that has happened in retailing over the past few years is that more and more businesses have come to grips with the idea that they have to be more nimble and aggressive in the ways they compete - they can’t just do things the way they’ve done.

And so, with the entry of Lidl, many have adjusted. Now, it’ll be Lidl’s turn to adjust - and everybody should expect that it will. If everybody is more nimble, the result is a more dynamic industry, which is a good thing.