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Lidl looks west in U.S. expansion

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NECKARSULM, Germany — German grocer Lidl reportedly is scouting for locations in Texas as part of its initial expansion into the United States.

Media outlets in the Lone Star state reported this month that while Lidl remains primarily focused on East Coast locations, the deep-discount grocery retailer has acknowledged it was looking at sites in Texas.

Lidl expects to open its first U.S. stores in 2018.

Meanwhile, it’s been busy laying the groundwork, announcing plans to build distribution centers in Virginia, Maryland and North Carolina. It plans to locate its U.S. headquarters in Arlington County, Va.

The Baltimore Sun recently reported that Lidl plans to open a regional headquarters and distribution center in Cecil County, Md., investing $100 million to build an 800,000-square-foot facility and hiring 100 full-time employees over the next three years.

Lidl has about 10,000 stores in 27 countries in Europe. It stores feature lower prices on a more limited assortment (around 3,000 items) than is stocked in a traditional U.S. supermarket. Lidl has its own clothing line and more general merchandise.

Industry analysts expect that Lidl’s U.S. stores might add more up-market merchandise to attract middle-class shoppers. The retailer’s stores have been described as a hybrid of Walmart and Trader Joe’s outlets, with an assortment that includes groceries, furniture, appliances and clothing.

The size of the stores, according to Lidl, is expected to be similar to that of Walmart’s Neighborhood Markets.

Lidl last year announced that it had acquired German grocery delivery start-up Kochzauber, prompting speculation it could take the concept into other markets.

Lidl said ordering recipe boxes for home delivery had become a growing market in Germany and its acquisition of Kochzauber was a response “to consumer demand for cooking delicious meals using market fresh ingredients.”


ECRM_06-01-22


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