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FOR LIDL, hard discount BELIEVED THAT TRADEMARK

read on the newspaper's website LSA February 17, 2011
LIDL, hard-discounter who believed trademark
February 17, 2011 by FREDERICK THERIN AT MUNICH


Almost as secretive his rival Aldi, Schwarz Group has built an impressive growth of Lidl expanding fast and a shift to brands.

Lidl is the story of the frog that is - almost - came to be as big as an ox. For two years, the brand is the first discounter Aldi in Germany to South ... Aldi Nord. If the two entities created by Albrecht brothers were reunited, their sales would be almost two times larger than their main rival, Lidl, but never ceases to nibble market share. In 2010, revenues from Lidl and have increased 3.6%, when those of its giant competitor fell 1.1%. In twelve years, the company that controls Lidl Schwarz family has seen its turnover increase by 12.8 to 54.8 bn €. A success based on three pillars.

- Upmarket In Germany, Lidl was the first discounter to offer brands next to its private label. They represent a quarter of its revenues. "Customers are less focused on price, product quality becomes important," says Gerhard Hausruckinger Accenture. National brands also enable it to attract new customers without incurring additional costs, because their prices are often higher than hypermarkets promotions.

- Opportunities galore to win market share, the group based in Neckarsulm, in Baden-Wuerttemberg, also increased the openings. In Germany, nearly 600 outlets were opened in the last seven years. In France, the distributor controls one-third of the park hard-discount (1520 stores). In one year, nearly 100 new units were opened. Lidl is present in all departments except Corsica and Lozère, and in some regions, the density of stores is over 20 outlets per million inhabitants.

- Internationalization Its logo is visible in 25 countries. Its leaders, too, followed a risky strategy by setting up operations in countries where real estate is very expensive (Great Britain, Switzerland), and going into emerging markets (Romania, Hungary).

- Change The Picture "management to Lidl" has long been the Achilles heel of the group. The union Verdi published in 2004, a "black book" denouncing the pressure on employees. More recently, Stern revealed that the discounter had used detectives to spy on them. Recognizing the devastating impact of these revelations, Lidl has appointed a new boss in 2009 for Germany, Juergen Kisseberth, which attempts to improve the image of teaching by advocating the creation of an hourly wage minimum set at 10 €. Aldi has not yet said anything about it ...

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Lidl figures



54.8 bn € turnover in 2009 for the Schwarz group (Lidl supermarkets and Handelshof Kaufland)

27.38 bn € turnover 2009 for Schwarz Germany

14.9 bn € turnover in 2009 to Lidl in Germany

24% market share for Lidl discount in Germany

4.7% market share in France on charges PGG and LS

8 000 units in 25 countries worldwide



for Lidl stores in France 1 520 1 900

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