Competition Heating Up in Grocery Business

Jun 16, 2017

The German grocery chain, Lidl opened ten stores in the United States on Thursday. The company plans to open 80 stores on the East Cost by the middle of 2018. The company hopes to offer considerably lower prices. While larger than their German counterparts, Lidl stores in America will be about 20,000 square feet with six aisles. Rather than sell multiple brands of the same items, Lidl emphasizes exclusive brands. Lidl US CEO, Brendan Proctor, says, “Our mission every day is to deliver our customers less complexity, lower prices, better choices and greater confidence.” On the same day that Lidl opened its stores, Kroger announced a 0.2% drop in same store sales. Competition in the grocery industry is increasing and pressure on prices is getting greater.