In my latest Retail Wire weigh-in, I share five reasons why Walmart is rightfully concerned about Aldi, and now, encroachment from the next European small format wunderkind, Lidl.
Walmart is (rightfully) concerned about Aldi and Lidl for several reasons:
- The combined, efficient, small-format scale;
- The just-different-enough propositions of Aldi and Lidl. Together, they cover a lot of important ground (private and national brand strength, easy-to-shop and easy-to-operate formats, convenience, low-cost operating model and more);
- Lidl beta testing click-and-collect in Europe (with potential to parlay in the U.S.) — something U.S. dollar stores haven’t prioritized;
- Aldi’s ongoing format refinements and doubling down on organics. Aldi isn’t standing still;
- Lidl isn’t just putting a toe in the water, they have aggressive rollout plans.
There is more but that’s enough to keep folks awake at night for now.