Lidl flops in the US
Forbes reported on Lidl's poor performance after entering the US market in 2017. At the time, Lidl's promise was to convince US consumers to "Rethink Grocery" and to open 100 stores by the summer of 2018. The grocer was viewed as a threat to the incumbents - Kroger, Albertsons, Walmart and regional grocery retailers. However, 12 months down the road and Lidl has only opened 53 stores and has failed to achieve anything close to a viable, long-term business strategy capable of gaining enough market share to destabilise its competition. The article asks the obvious question - how is it possible that a retailer operating 10,500 stores in 28 countries, with a reputation for being one of the best grocery retailers in the world, could fall so short in the US market? Lidl's business model just doesn't work in the States and the business is yet to adjust. Lidl's results confirm that entering the retail space in the US remains a big challenge, even for excellent operators.