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Aldi and Lidl – Discounter-duel in the world

The food retailer Lidl and deduct it as the arch-rival Aldi, increasingly, in the inner cities. Also abroad, the competitors is fierce competition.

Ironically, at the düsseldorf luxury shopping street Königsallee (“Kö”) has opened the Discounter Lidl this Thursday a market. The company aims with its comparatively small branch with only 700 square meters of sales space, especially on the quick shopping in the “misses”. And to the competitors Aldi, which operates on the other side of the road for some time, been a market.

In the process, Lidl has, in addition to the local residents for lunch in the numerous office employees in the environment in focus. For years Lidl is planning to open up new locations in the whole of Germany. Potential to see, especially in the metropolises, but also in the rural area.

Currently, the branch network comprises of approximately 3200 markets. For the new store on the “Kö,” there is no closure elsewhere. According to data from the EHI Retail Institute, the average sales area of the Lidl markets is nearly 900 square meters with a rising trend.

Aldi as a pioneer

Aldi Süd had already opened five years ago, a market on the “Kö” and at the time, pointed out that the Nobel address was only a side effect. Suitable for the old traders saying “competitive business” revives Lidl sees the immediate competition on the “Kö” to the only a few meters away, Aldi-market sporty: “More dealers mean more that the attraction of this location is increasing still more,” said a Lidl spokesman in the run-up.

Both the Discount chains are under significant pressure. Because, according to a market analysis by the Association for consumer research, the cheap providers lost a total in the first six months of noticeable market shares in the major supermarket chains such as Edeka or Rewe. “While the Super – and consumer markets were able to increase their sales in the first half of 2019 two percent of the drugstores and even close to three percent, you need to seek the Discounter to a ‘black Zero’,” reports GfK.

Price competition in the grocery trade

Expansion abroad

Because the home opportunities because of the dense network of supermarkets, drugstores and discounters, limited, expansion of Aldi and Lidl for decades abroad. Branches of the company are now found in almost all the countries of Europe, in many Parts of the United States as well as in Australia. In the spring of 2017, the market entry of Aldi Süd in China. Selected products were initially offered exclusively through a Chinese platform. The first store opened in June of this year in Shanghai. Fully part have been activities in South America and Africa.

Aldi North and South, not come abroad in the way, because, as in Germany, the two companies have divided the world. What is striking, however, in many countries, is the direct competition between Lidl and Aldi Süd.

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Aldi and Lidl rocking the UK

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Aldi and Lidl rocking the UK

Often, they deliver hard-hitting duels for the favor of the customers. The prices will tumble often, and what the local competition makes life difficult. Thus, the two German discounters, for instance, in 2016, in the UK, a market share of slightly more than 10 percent – to the detriment of the so-called “Big Four”, the four big supermarket chains, Tesco, Sainsbury’s, Asda and Morrison. To 2022 alone, Aldi wants to give the United Kingdom me 1000 stores.

ul/hb (dpa)


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