Lidl plans London expansion

The retailer is looking for nearly 300 new locations for small to medium-sized supermarkets within the M25.

In addition to the most exclusive central districts, the property wishlist of 281 features many affluent addresses including Chiswick, Muswell Hill, Barnes, Battersea, Dulwich and Wandsworth that were previously uncharted territory for Lidl and where Waitrose, Tesco and Sainsbury’s dominate.

Morrisons has announced the sale of 140 convenience stores and the imminent closure of 11 stores after 47 per cent slide in annual profits. Alongside fellow German brand Aldi, Lidl has pursued an aggressive pricing strategy to gain a sizeable market share – now above four per cent.

Lidl, along with sister store Aldi, has grown in popularity over the few years, creating huge competition in the supermarket industry and driving prices down.

Last week its stores introduced 60 new lines to its “Wine Cellar” concept, all from France, including less well-known wines such as Arbois, and a white Châteauneuf-du-Pape. For this objective, it has even bought a five-acre site in southwest London at Tolworth. It has a 4% share of supermarket sales in the United Kingdom, generating a record turnover of more than £4 billion.

The company is also planning to set up a new headquarters, which will be a 220,000ft building, to accommodate more than 750 people.

Image: Lidl store in Middlesbrough, UK. “You don’t do your main shop there”.

John Froman, public relations and marketing manager for Lidl United States, was quoted as saying its USA stores will offer fresh meat, produce and bakery items, as well as a wide selection of household goods.

German-based discount chain Lidl has selected Charlotte, N.C., as one of its first US target markets.

“I can’t see them moving into the heart of central London. They will end up with smaller shops – they’ll end up with convenience stores, which are a high-cost business model where it’s a lot harder to make money”, he said.