No-frills grocer Lidl to open first US stores this summer

[DonViejo]

Source: Associated Press



WEDNESDAY, FEB 15, 2017 09:45 AM EST

ANNE D'INNOCENZIO, ASSOCIATED PRESS

NEW YORK (AP) — Lidl, the German no-frills supermarket chain, is opening its first wave of stores in the U.S. this summer ahead of schedule, with plans to open up to 100 locations across the East Coast within a year.

The details of the expansion, announced Wednesday, come as Wal-Mart and traditional grocery chains already are seeing a stronger threat from German low-priced retailer Aldi, which has been aggressively expanding. Both offer low prices by focusing on store-label products rather than name brands. Aldi has also been adding items to include gluten-free products and fresh produce.

Lidl’s first 20 U.S. stores will be opening in North Carolina, South Carolina and Virginia, where the company established its first U.S. headquarters in 2015. Originally, it planned to open its first batch of U.S. stores no later than 2018. Lidl operates about 10,000 stores in 27 countries. Both Lidl and Aldi have been aggressively expanding in Europe. In the United Kingdom, a fierce price war has hurt Wal-Mart’s Asda business as well as traditional local retailers.

Aldi, which opened its first store in the U.S. in 1976, now has more than 1,600 stores in the U.S. and plans to increase that to nearly 2,000 by the end of 2018. It announced earlier this month that it’s spending $1.6 billion on remodeling more than 1,300 of them.

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Read more: http://www.salon.com/2017/02/15/no-frills-grocer-lidl-to-open-first-us-stores-this-summer/

[TubbersUK]

1. We have one in my area, it's pretty good. n/t

[cstanleytech]

3. Whats it best compared to? Just wondering as they have 4 planned for my area with the first due to

be completed over near where the Masters takes place in a few more weeks.

[Denzil_DC]

5. I'm in the UK, too and sometimes shop at LIDL.

They're no-frills stores - clean, but with frequently changing product displays and not much decoration. They don't tend to carry big-brand products, but rather (European) labels we don't see elsewhere. Recently, they've introduced in-store bakeries, though using doughs etc. prepared centrally. The quality and price of their vegetables in particular are very good compared to other outlets, and often include relatively local produce. Prices generally are very competitive.

They treat their staff well, by all accounts, and a year or two ago made a point of systematically paying more than a living wage.

Aldi's is similar (the competing stores were started by two brothers).

How much of this will translate to the US model is anybody's guess.

[cstanleytech]

7. Makes me wonder what the pay here in the US is like with Aldi for its employees.

I know most retailers especially in the grocery industry pay well under what would be a living wage here in the US, hell not even Publix pays a living wage now let alone one thats above that and they are considered to be one of the better chains for pay.

[LanternWaste]

9. Seems to average just over $12 an hour for non-managers.

Seems to average just over $12 an hour for non-managers.

https://www.glassdoor.com/Hourly-Pay/ALDI-Hourly-Pay-E7337.htm

[Denzil_DC]

12. Aldi in the UK is due to increase its pay rates next month,

following the lead of Lidl and UK store Morrisons: https://www.theguardian.com/business/2015/oct/26/aldi-to-increase-staff-wages-to-minimum-of-840-an-hour

Like I said, I've no idea how that aspect may work in the US market (nor indeed whether Brexit will have such an effect on supermarket economics that these increases may not be permanent).

[Lilyhoney]

13. Aldi pays a decent wage

$12.02/hr
ALDI Hourly Pay
Job Title ALDI Salary
Store Associate $12.02/hr
Cashier/Associate $12.16/hr
Manager Trainee $22.54/hr
Sales Associate/Cashier $12.27/hr
11 more rows
ALDI Hourly Pay | Glassdoor
https://www.glassdoor.com/Hourly-Pay/ALDI-Hourly-Pay-E7337.htm

[cstanleytech]

14. Thanks, I forgot about glassdoor.

Funny thing is I just checked Publix and they pay worse

Cashier - Hourly
$9.35

Deli Clerk - Hourly
$10.04

Customer Service Staff - Hourly
$10.81

[wishstar]

22. Aldi pays decently, but the employees earn every penny, work very hard

They have to hustle and do more variety of jobs, running back and forth from checkout to storeroom, hauling around the massive carts, stocking shelves etc. They are required to work more rapidly at checkout compared to other stores.

We love our nearby Aldi, same manager has been there over 10 years and is great friends with all of us regulars and she is very hands-on all over store helping both employees and customers.

[NickB79]

15. It's around $13-$14/hr to start in the Minneapolis/St. Paul area

Which is better than almost any other grocery chain in the area. My wife only makes $15/hr, 30 hr a week, at Cub Foods as a pharmacy tech with an associates degree and 8 years experience. New hires for stocking and cashier start around $9-$10/hr there.

The only place that pays better than Aldi here in the grocery game is Costco, and maybe Hy-Vee.

[nikibatts]

32. What are the benefits? Health insurance? Retirement? Upward mobility?

Hours, working conditions. etc.?

[Corey_Baker08]

18. Aldi Pays Great Here In Indiana/Ohio

[jmowreader]

29. Aldi has very good pay, but there is a tradeoff

A traditional full-line supermarket employs a LOT more people than an Aldi does. The Aldi in Fayetteville, NC, has five employees for the whole store. The Winco I shop at in Idaho employs more people than that in the produce department. And there's a very good chance that most of the five people who work in that Aldi have worked there the entire time the store has existed.

So...they pay well if you can get a job there, but you can't.

[crazycatlady]

30. Aldi's the only retailer that lets their cashiers sit on stools

Most cashiers are on their feet all day.

[kiranerys]

38. Facebook keeps showing me a help wanted ad for the one near me

And they're offering $12-something starting wage for cashiers and $17-something for supervisors. That store is in a neighborhood where you can get a 2-bedroom apartment for under $1000/month, so that's really quite decent. Plus, the cashiers get to sit down, which I don't think I've seen in any other chain retailer.

[cstanleytech]

44. They really arent cashiers they do it all from what I have seen at the one I go to

from stocking to cashiering and the only time they get to sit is when its cashiering otherwise they seem to stay pretty busy in other areas.

[TubbersUK]

6. It's difficult to make a comparison

because it's different to what went before here.

The main features are:

Very good pricing
Lots of interesting continental lines
Rapid change in lines - nimble sourcing
Decent fruit and veg, meat, dairy (much locally sourced) at noticeably cheaper prices
Very good in-house baked goods
No frills in terms of shop fittings etc
Pays staff relatively well
Customer service is fine though not flashy

It took a while to get used to it, but we're regulars now.

ETA: I prefer it to Aldi in terms of quality but others may differ.

[catsudon]

31. perhaps aldi?

I wonder, have never been to lidl before, so i can't say except the 'no-frills' reminds me of aldi.

[Sherman A1]

2. Thanks for posting

Traditional supermarkets should have been paying more attention to Aldi. In my opinion they have and do pose much more of a threat to their business.

[cstanleytech]

4. Meh, Aldi is ok if your looking for budget produce but they dont

have the best quality control and more often then not there is some mold and or rotten stuff mixed in with their stuff which I can understand seeing as they dont have a traditional setup with people assigned to work in only a specific department.

[LanternWaste]

10. Is that merely a personal observation or are there objective numbers validating the allegation?

"more often then not there is some mold and or rotten stuff mixed in with their stuff..."

Is that merely a personal observation or are there objective numbers validating the allegation?

[cstanleytech]

11. Entirely personal based on my shopping at the Aldi in my area.

I understand "why" it happens as they appear to run the stores with a skeleton crew that has to oversee the entire store which includes checkout so its understandable and all it means is I have to take a few extra seconds to check the products before I buy.
Their prices are still very good and more often than not beat the local grocery stores prices for produce unless there is a sale on.

[kiranerys]

39. I doubt there are any numbers like that, but that's been my observation too

Their produce is very cheap, but also seems to go bad more quickly and more likely to have some soft spots etc. Still a good value, though.

[NickB79]

16. Agree on the produce. It's cheap, but use it fast

Aldi produce consistently goes bad faster than other store's offerings in my experience (and I've been a regular Aldi customer for 7-8 years). More than a week in the crisper and I end up feeding it to my compost pile or chickens.

So, I just buy what I know I'll use up in less than a week, problem solved.

[cstanleytech]

17. Yup, bought some mushrooms a few weeks ago cheap got home, popped them in the fridge for the next

day and pulled them out and mold city all over the place lol

[starshine00]

33. our Aldi here is amazing

they have quite a bit of organic produce and it is priced reasonably unlike many natural food stores, they have an unbelievable amount of gluten free stuff too, that is reasonably priced. it is always packed to the gills when I go, I know they pay several dollars more an hour than the other stores to their cashiers and I LOVE the fact that they do not automatically bag groceries. They offer bags for a fee but people mostly bring their own bags, I rarely see anyone buying them. They are decades ahead of the US and I am so grateful that my little one horse town has one.

[NWCorona]

8. No frills? I must be shopping at the wrong store

[OnDoutside]

19. I much prefer Lidl to Aldi, it's just that notch higher and the prices are excellent. Also,

I first came across Lidl in 1998, in Belgium, where my miserly landlord used to go to his local store for the toiletries but wouldn't touch the foodstuffs !!!

Lidl and Aldi have been in Ireland for nearly a decade now and have over 20% of the market....they are hugely popular while giving Tesco a bloody nose, as their market share has reduced. They've kept grocery prices far more competitive than if they hadn't come into the market, and both have bought into the excellent quality produce in Ireland, from dairy to chicken to beef/lamb, while bringing in excellent food from their sister stores all over Europe. Every so often there will be a French week, Spanish week, Greek week and so on, where they bring in foods/drink that would normally be far more expensive elsewhere (if you could get them). They even bring in the North American lobster at a great price, making lobster accessible to even poorer people. Plus they have an excellent bakery.

From a point where people were wary, you'll see everything from old wrecks of cars to brand new top of the line cars in the car park. That bit of snobbery is well gone. It's funny, that they are even cheaper for alcohol in Spain

Have a look here http://www.lidl.ie/en/index.htm#

[Blue_Tires]

20. I didn't ask for this...

Why are we importing grocers here in VA?

[Sherman A1]

21. Excellent Point

one would think that they see a market that is underserved. Retail Grocery is a very, very hard business to operate with any success. Perhaps our US firms are missing something that this company sees?

[OnDoutside]

23. They will beat the backside off US retail firms.

We thought people wouldn't be interested in Lidl or Aldi here in Ireland, boy were we wrong ! They've been a breath of fresh air.

[Sherman A1]

26. I tried and tried to make the point when I was working

in the grocery biz that Walmart was not the threat it was being made out to be. The real issue is stores such as Aldi who run limited selection stores and gut the customers weekly grocery order. When customers shop at Aldi and pick up the many staples of the week, it really impacts the total at the full service grocer. I still recall the amazement of our Front End Manager when I tried to explain this and she couldn't believe it, my only response was check out the Aldi parking lots as you drive by them, they are always full.

[OnDoutside]

27. Yes, and those who do up their game will be competitive. Tesco's market share here in

Ireland is around 21%, 7% down from 10 years ago, while the combined Aldi/Lidl share is about 23% (from zero about 10 years ago). Tesco's response has mostly been to become serial objectors to any new Aldi or Lidl stores, while other competitors like Supervalu and Dunnes Stores had responded positively to the new competition.

[starshine00]

34. yes, my biggest complaint about our Aldi is that it is always so crowded

it is shopping cart bumper to bumper in the aisles and as I shop for only myself I sometimes get caught in the slow parade of shopping carts because the aisles are so packed.

[Mosby]

42. Fresh and Easy (British)

Got there asses kicked in the US market.

Lost hundreds of millions of investor dollars.

[Blue_Tires]

28. Unless of course they offer/import stuff I can't get at the regular places

I just don't see yet how this business model will work

[starshine00]

35. they sell what is essentially the same product at much cheaper prices

from having worked in manufacturing, though not in food production, my theory is that when a batch is not up to snuff for whatever reason, an alternative label is put on what might be something from like Campbell's soup or Nestle or Kellogs, or what have you. I have for instance worked at a distributor where a shipment of sweaters came to us with a Belk label that we had to remove and attach an off brand label to. I strongly believe that the foods Aldi sells are made at the exact same places as many popular brands but they are given off labels for whatever reason and sent to grocers like Aldi instead. They also of course sell known brands of foods when they get deals. But things like nacho chips or cheese dip will be a dollar to dollar and a half cheaper than the regular grocery store. I find differences like this all the time and most of the time the taste is the same.

[Sherman A1]

36. Having worked in Grocery

I can tell you that there are companies that are dedicated to making the private label for stores. It is not just something that didn't meet specs for the name brand but an entire industry of private label made to a different set of specifications. What you see on the shelf at Wal Mart in a private label is probably the very same product on the shelf at a Kroger with their private label on it. Some of that is done by the name brand manufacturers and other parts of store's private label lines are produced by companies that do nothing else but make the product and slap on the label for your chain.

[starshine00]

37. aha

I don't think aldi sells aldi brand anything though...not that I have seen, the brands are very obscure names that I have never seen anywhere else, that is why I assumed they were just a differently labeled version of a popular brand product. Your explanation makes a lot of sense in the case of chain stores, I buy a lot of store brand products whenever I go to a chain like Food Lion.

[kiranerys]

41. They don't call them "Aldi brand", but they're still their brand - many grocers do that

Giant/Stop & Shop has "Nature's Market", for example, and Safeway has "Lucerne". Same with Aldi. Just because it says, like, "Pueblo Lindo" on it, it's still Aldi brand. (That one makes me laugh - "cute people"?)

[jetcat]

45. Lucerne is a rather fascinating case study in house branding.

You won't find much on Lucerne's corporate websites about its ownership by Safeway, and the two make a fairly concerted effort to avoid the impression that Lucerne is a Safeway store brand. This is quite different from, say, Kroger's direct Kroger labeled house brands, or HEB's in-house branding. I wonder if it's related to more than just branding, though, like some kind of tax structuring between Safeway and what is more a subsidiary than a house brand.

[kiranerys]

40. They're cheaper than Walmart, for one

And also offer some cool imported European snacks, cheeses, etc, and different unique seasonal things. And they pay much better than regular groceries, even union shops.

[MyNameGoesHere]

24. It cost me more but I stick with the food stores

That have a majority of union workers. Friends and family work at Safeway and Giant and the union has been pretty good for them.

[Sherman A1]

25. From a Retired Union Grocery Worker

Thank You! Much appreciated!

[kiranerys]

43. For what it's worth, Aldi pays better than Safeway/Giant. Dunno about Lidl.

I try to stick with union shops otherwise, but I'm also very happy to support companies that voluntarily choose to pay a living wage or close to it.