Lidl: key updates on four evolving markets

Date : 22 June 2016

We look at Lidl's latest developments in the Netherlands, Denmark, Spain and new market, Lithuania.

Lithuania: entering the market with 15 stores

Lidl has entered its 27th market. The discounter launched its new venture in to Lithuania with 15 stores across nine towns and cities, including five in the capital city of Vilnius. Supporting these and future stores is a €40m logistics centre in the south-central city of Kaunas. Lidl is said to invest €60m more in Lithuania this year with plans to add 20 more stores to the estate. The CEO of Lidl Lithuania is Radostin Dimitrov Roussev-Peine.

Netherlands: new online shop and electric charging points

Lidl has launched an online shop in the Netherlands selling non-food products. This new transactional platform follows a strategy that Lidl has already tested in Germany and Belgium. Dutch shoppers will now have online access via a new website to buy products such as home decor, kitchen tool, fashion and more. The delivery process is flexible; orders can be either delivered to a specified address or picked up from a DHL Parcelshop. A click and collect service would make this service even more flexible, eliminating the standard €2.99 delivery fee.

Further developments in the Netherlands includes the introduction of free electric car charging stations at ten stores, with the first at the discounter's Zaandam store. This new initiative is being rolled out in stores that get the most of their energy supply from solar panels. Over the course of the year, Lidl plans to invest 6m in to such energy-saving features which it expects will be a footfall driver as it meets current and future trends.

Denmark: Lidl+ initiative and promoting local products

Lidl tested a new promotional initiative Lidl+ in 2014 and it seems the trial has worked well, with Lidl continuing the offer across four Copenhagen stores: Finsensvej, Amager Strandvej, Glostrup and Vesterbrogade. Lidl+ is a membership club which gives members a welcome offer and access to exclusive weekly promotions which they receive by email.

Lidl Denmark is currently promoting quality and value of its organic range, comparing the basket spend with competitors, making the discounter stand out in terms of price. Lidl makes buying organic fun with an online quiz that gives entrants the opportunity to win 1,000 Krone to spend on the organic Øko private label range. A focus for Lidl Denmark is also local food, with the discounter currently putting focus on its local range named 'En bid af Danmark', meaning 'A bit of Denmark'.

Spain: largest ever distribution centre and record market share

Lidl has revealed plans to build its largest ever distribution centre in the Spanish town of Alcalá de Henares, near Madrid. Expansion in Spain is a clear priority for Lidl as it continues to experience strong growth in the market. The 71,000 sq m facility will dedicate 12,000 sq m to cold-room storage and will have enough space to store 10,000 pallets and serve 150 stores. Lidl is investing c.€70m into the project which will constructed in two phases. Phase one is due to be completed by this autumn, with phase two following a year later. Interested in the big FMCG supply chain news? Sign up to IGD's free weekly newsletter.

This year is another strong period of growth for Lidl with the discounter's parent company Schwarz Group investing a total of 6.5bn across its total network.

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Priya Chandarana is a Retail Analyst at IGD, specialising in research on the growing  discount channel. She brings food and wine retail and PR experience to IGD. To learn more about how IGD's research can benefit your business further, please get in touch - [email protected]

@Priya_Retail