Lidl was first founded in Germany as a grocery wholesaler back in the 1930s by a member of the Schwarz family. The first Lidl stores were opened in 1973. By 1977 there were 33 Lidl stores in Germany. By the 1980s Lidl was a household name throughout Germany. Lidl sells meat, vegetables and wines as well as groceries, special buys (everyday collections), and garden products. The discount shop has an app that customers can use to order online. The supermarket chain saw revenues of 24.33 trillion Euros in 2017, and is the largest discount store chain in Germany.
This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by Lidl.
Lidl At A Glance – Lidl SWOT Analysis
Company: The Schwarz Group
Founders: Josef Schwarz
Year of establishment: 1973
CEO: Christian Härtnagel
Headquarters: Neckarsulm, Germany
Employees (Dec 2020): 315,000
Ticker Symbol: Lidl is not a publicly traded company
Annual Revenue (Dec 2020): EURO€ 57.000 Billion
Profit net income (Dec 2020): EURO€ 1.287 Billion
Products & Services: Discount store | High-quality, brand-agnostic products at discount prices
Company Website: www.lidl.com
Top Lidl Competitors
Competitors: Carrefour | Tesco | Walmart | Woolworths | Coles Group | Kroger | Target Corporation | Amazon | Dollar General | SuperValu | Coborn’s
Lidl SWOT Analysis – SWOT Analysis Of Lidl
SWOT Analysis Of Lidl analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Lidl SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Lidl SWOT Analysis. Below Is The Detailed SWOT Analysis Of Lidl.
Lidl Strengths – Lidl SWOT Analysis
1. Low prices Pricing: The primary reason discount stores like Lidl have been so successful is the low prices they offer on most everyday products. They sell the most important goods at much lower prices than their competitors. In addition, they offer regular promotions as well as special offers in many specialist categories.
2. Customer Satisfaction: Lidl has been able retain customers and attract new business by offering low prices, quicker checkouts, shorter waiting times, better service, and lower prices. They use the strategy to save money by comparing prices offered to mainstream retail prices.
3. Private Labels: Lidl was able to introduce private label brands into most of the top-selling categories. This has resulted in competitive pricing strategies that have allowed suppliers and competitors to drastically reduce their prices.
4. General merchandise focus: Lidl is more focused on general merchandise. More than 25% of their shelves are dedicated to general merchandise, which often gives discount stores greater margins than other product types. General merchandise has a faster turnaround time and generates strong cash flow, while also helping to offset low-price strategy on low key items.
5. A strong focus on operations strategy: Lidl, like most discount stores has, also focuses on operational effectiveness . From their warehouse to the end of the supply chains through technology tools, the retailer has worked hard to increase productivity and keep costs down. It is important that there is no waiting in the backroom and that the products are delivered directly to the shelves. The check out process has been simplified and checked for any gaps on a regular basis. Customers do the bagging and the cashier handles the billing. This increases labor productivity.
Lidl Weaknesses – Lidl SWOT Analysis
1. Inability of entering foreign markets successfully: Quite different from global contemporaries Target and Walmart, Lidl has remained largely focused on Europe, the UK, and the USA. They are not focusing on Asia, which is home to some of the most promising emerging markets such as China or India.
2. Pricing Problems: Lidl is well-known for their predatory pricing practices and have had stories about suppliers being forced to lower prices. Lidl also has been undercutting the competition by using unethical pricing strategies.
3. Ethics Questions: Lidl is being criticized for its unethical business practices. It is also involved in numerous controversies, including the 2008 spying case against employees, 2016 extortion cases from Lithuania, poisoning incidents in different regions, and numerous religious noncompliance.
Lidl Opportunities – Lidl SWOT Analysis
1. New Segments: Retail around the world is booming, and the geographical borders are hardly relevant with the rise of online retail. This has allowed retailers to access new segments and markets around the globe.
2. Increased spending: With an increase in dual-income households, the propensity for spending has increased for most millennials around the world. People are also more inclined to indulge in impulse shopping, which presents a opportunity to retailers.
Lidl Threats – Lidl SWOT Analysis
1. Competition: The main competitors to Lidl include Aldi and Morrisons, Asda Sainsbury’s, Asda, Morrisons and Tesco. They also face competition from online retailers like Amazon.
2. More attention to low-income groups: The increased focus on one economy segment can create an image of a low-quality player. In the long-term, it could impact the growth and success of businesses like Lidl. Lidl will have to remain in only the low-income, low-value segment.
3. Image of low quality: Lidl products tend to be lower quality than those sold by competitors because they are often from private labels.
Lidl SWOT Analysis Overview Template
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