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Location: The place where the road & the sky collide
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Quote:
Originally Posted by Carolina Knight
Kroger's acquisition of Harris Teeter in 2014 greatly improved its presence in Virginia and gained entry into Delaware, Maryland, and the District of Columbia.
Publix is expanding up the Atlantic seaboard. After announcing a store in the Richmond area, I could see further expansion into Arlington-Alexandria, Virginia Beach-Norfolk-Newport News, Roanoke, Lynchburg, Charlottesville, Blacksburg, Winchester, Harrisonburg, and Danville. Expansion into Delaware, Maryland, West Virginia, and the District of Columbia is possible.
Lidl does have stores planned or sites selected in Georgia. I know five stores are planned in South Carolina.
The Philadelphia /South Jersey /Delaware market has lost participants. It's nowhere near as competitive as it used to be. If Publix doesn't continue into Philadelphia & South Jersey they would be foolish.
Location: The place where the road & the sky collide
23,814 posts, read 34,693,648 times
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Quote:
Originally Posted by CH101
Their main competitor in Europe may be Aldi, but make no mistake that they fully intend to compete with traditional grocery stores in the United States. This has been seen time and time again in new markets they enter, and the fact they are going with a new concept store exclusively for the US market shows their intentions.
That being said, have you been in a newer Aldi recently? They have substantially stepped up their game as well, and have launched a slew of premium, gluten-free and organic products. https://www.minds.com/blog/view/5440...owfoodnotlawns
Yes, but if they go through with a purchase, it shows they are not afraid to enter the competitive PA/NJ/NY market.
Google "Aldi & Lidl". You will find article after article about what the combination of the two chains is doing in Great Britain.
Google "Aldi & Lidl". You will find article after article about what the combination of the two chains is doing in Great Britain.
I am well aware what the two chains have done to the UK market, and how they continue to build their market share and attract new customers that many thought would never shop there. That is why I am trying to make the point not to underestimate their US efforts and what they will bring to the market. Aldi US has already begun their assault.
Lidl is a discount grocer, not a supermarket. It competitors are Aldi and Save-A-Lot.
Aldi and Lidl competes with all other grocery chains. It doesn't seem so uncommon any more that people combine shopping at Wegmans with shopping at Aldi.
Quote:
Lidl's stores will offer more than discount grocery.
I'm not sure what discount grocery means. Do you mean the limited selection or that they sell mostly private label brands? In my opnion the term "discount" is very misleading. A more suitable term is maybe limited assortment grocery retailer? The prices for the food isn't discounted. They just sell mostly private label brands for a reasonable price. Conventional supermarkets charge higher prices because they have higher overheads.
Quote:
Aldi would attract price conscious customers and business away from consistently low performing supermarket participants.
That's probably still the case in the U.S. It was the same in Germany back in the early 80s or 5 years ago in the UK. But that has changed completely. I'm pretty sure that will also change in the U.S. Especially with the entrance of Lidl. But as far as the grocery market in the U.S. is still very fragmented, all well managed grocery chains will expand their market shares on the expense of underperforming chains.
Quote:
Aldi and Lidl are similar stores attracting the same customers. Lidl will be offering more than a limited assortment of discount grocery (i.e. dollar store items, house needs).
European Lidl stores have normally less non food items (those weekly changing offerings) than Aldi stores. Lidl offers much more name brand food products than Aldi and also more food specialties from other European countries. I'm absolutely sure that Lidl in the U.S. will offer a wide variety of food specialties from Europe, especially from France, Italy, Spain or Greece. Aldi-Süd don't operate in all those countries. Lidl has surely a high buying power for such food specialties. They are already "flooding" European countries with such sublime food products. That could be a unique selling point for Lidl in the U.S. market (reasonable priced European food specialties).
The appearance of Lidl stores in the U.S. will be significant more upscale compared to Aldi stores. I'm pretty sure that they will be able to attract more affluent customers.
The Philadelphia /South Jersey /Delaware market has lost participants. It's nowhere near as competitive as it used to be. If Publix doesn't continue into Philadelphia & South Jersey they would be foolish.
Publix has to add stores in Virginia before it considers expansion into Delaware, the District of Columbia, Maryland, Pennsylvania, and West Virginia. Expansion into the Washington and Philadelphia areas would necessitate a new retail division and additional distribution centers.
I'm not sure what discount grocery means. Do you mean the limited selection or that they sell mostly private label brands? In my opinion the term "discount" is very misleading. A more suitable term is maybe limited assortment grocery retailer? The prices for the food isn't discounted. They just sell mostly private label brands for a reasonable price. Conventional supermarkets charge higher prices because they have higher overheads.
Discount and limited assortment grocers are in the same segment. Indeed they have limited assortment of products at lower prices and have reduced overhead and expenses.
Location: The place where the road & the sky collide
23,814 posts, read 34,693,648 times
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Quote:
Originally Posted by Carolina Knight
Publix has to add stores ini Virginia before it considers expansion into Delaware, the District of Columbia, Maryland, Pennsylvania, and West Virginia. Expansion into the Washington and Philadelphia areas would necessitate a new retail division and additional distribution centers.
I know, but I'm just saying that it's not as competitive as in the past. There is also a demographic that Publix targets in Florida. There would definitely have to be one or two additional divisions.
Location: The place where the road & the sky collide
23,814 posts, read 34,693,648 times
Reputation: 10256
Quote:
Originally Posted by lukas1973
Aldi and Lidl competes with all other grocery chains. It doesn't seem so uncommon any more that people combine shopping at Wegmans with shopping at Aldi.
I'm not sure what discount grocery means. Do you mean the limited selection or that they sell mostly private label brands? In my opnion the term "discount" is very misleading. A more suitable term is maybe limited assortment grocery retailer? The prices for the food isn't discounted. They just sell mostly private label brands for a reasonable price. Conventional supermarkets charge higher prices because they have higher overheads.
That's probably still the case in the U.S. It was the same in Germany back in the early 80s or 5 years ago in the UK. But that has changed completely. I'm pretty sure that will also change in the U.S. Especially with the entrance of Lidl. But as far as the grocery market in the U.S. is still very fragmented, all well managed grocery chains will expand their market shares on the expense of underperforming chains.
European Lidl stores have normally less non food items (those weekly changing offerings) than Aldi stores. Lidl offers much more name brand food products than Aldi and also more food specialties from other European countries. I'm absolutely sure that Lidl in the U.S. will offer a wide variety of food specialties from Europe, especially from France, Italy, Spain or Greece. Aldi-Süd don't operate in all those countries. Lidl has surely a high buying power for such food specialties. They are already "flooding" European countries with such sublime food products. That could be a unique selling point for Lidl in the U.S. market (reasonable priced European food specialties).
The appearance of Lidl stores in the U.S. will be significant more upscale compared to Aldi stores. I'm pretty sure that they will be able to attract more affluent customers.
Aldi is considered to be a discount grocery store in the US. They sell good quality products at cheaper than usual prices by selling them with Aldi labels. They also sell nonfood items at incredibly good prices.
Aldi has been in the United States for at least 15 to 20 years.
Yes, I am aware. We have had Aldi in South Jersey for quite some time. What I meant is they have started their assault on moving past discount perceptions and capturing more affluent shoppers with more premium offerings. The great recession helped them drive more customers to their store out of necessity, but they have been able to hang on to those customers and grow the base even after the recession ended. Now they have more premium offerings, new premium store look (compared to the old bare-bones look), and big $3 billion expansion plans. Hence assault. There are countless articles on this if you Google them.
southbound_295 mentioned the UK market earlier as an example, here is a great excerpt in one of the articles showing what Lidl and Aldi have done to the UK market in the past 5 years:
"Aldi and Lidl have upended the UK grocery market over the past several years by sending the nation's largest supermarkets into a crippling price war that has dented profits, triggered layoffs, and sent the companies' share prices tumbling, The Wall Street Journal reports.
The CEO of Asda, the UK's second-largest grocery chain, has called the new competitive environment created by Aldi and Lidl "the worst storm in retail history."
...... “It used to be that people might have been embarrassed to be seen at Aldi,” says the 51-year-old teacher. “But I think that’s gone.” ......... "Indeed, as the discount-driven German duo expanded offerings, they have stolen away market share from the country’s traditional players. Those grocers, in turn, have seen their stock prices plummet, triggering executive ousters, layoffs and billion-dollar write downs."
Last edited by CH101; 02-29-2016 at 02:35 PM..
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