That selling point has done well for Lidl in its traditional markets overseas, according to Burt P. Flickinger III, managing director at Strategic Resource Group.
“They do a tremendous job in really socializing and communicating how they’ve raised the standard of living for families,” he says, noting a campaign in Ireland that focused on how supermarket savings could help improve a family’s future. He said the challenge for Lidl is explaining that low prices doesn’t mean “proverbial garbage quality.” Lidl often uses its packaging to help display local origins, for example.
Flickinger says that COVID-19, which led to surging grocery demand resulting in empty shelves of well-known American markets, helped Lidl, and Aldi, another European chain focused on U.S. growth, gain traction with U.S. consumers.
“Consumers went to so many stores that they’d grown up shopping, from Target to Walmart to the supermarket sector and came up empty,” he says. “Once they started shopping Lidl and Aldi, they changed their shopping patterns to save money.”
Such changes are helping Lidl make its mark. The brand was recently named No. 1 on the National Retail Federation’s list of the 100 fastest-growing retail companies. According to the NRF, Lidl grew its U.S. sales 69% to $1.1 billion between 2019 and 2018.
Lidl is also known for looking at advertising in a different way than its rivals, according to Flickinger.
“Instead of looking at advertising as an expense, the way 99.5% of the U.S. food retailers do, Lidl looks at advertising and 360-degree consumer