Dive Brief:
- Lidl, the German discount grocer, will be entering the greater Cincinnati area this summer, according to the Cincinnati Business Courier. The company is apparently seeking out sites in both greater Cincinnati and Dayton.
- The retailer announced earlier this year that it would open 20 U.S. stores this summer as part of 100 planned openings within a year.
- Lidl is shopping for four-acre sites that can house a 36,000-square-foot store and provide parking spaces for at least 180 cars.
Dive Insight:
Cincinnati-based Kroger probably isn’t too thrilled with someone intruding on its home turf — especially when it’s clear that the German-based discount store, which comes to the U.S. this summer, is trying to capture a piece of its market share.
Lidl, whose U.S. opening is both exciting and troubling for retailers, is known to offer deep discounts on national and special limited-availability brands. It often offers sales for very limited periods of time, like just an hour. The retailer will reportedly be offering more variety, including fresh products and national brands, than other discount grocers in the U.S.
Kroger stores are generally almost four times the size of the planned Lidl stores. Kroger should beat the discounter from a variety standpoint, especially at its more flagship stores. But Lidl is known for its low prices and high quality.
For a store like Kroger to compete, it has to not only offer specials, but it must create an environment that people want to shop in. This means adding more technology to be make the shopping experience easier, and hosting food tastings and other in-store opportunities for consumers. Kroger has been investing in digital shelf technology to give shoppers real-time recommendations, and it's been starting in the Cincinnati area. Innovations like this can certainly give the conventional grocery a leg up in terms of shopper experience.