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Lidl set to become Europe's biggest grocer by 2018

By Tim Sandle     Jun 22, 2014 in Business
Neckarsulm - The company behind the Lidl supermarket chain is set to become western Europe's biggest grocery retailer by 2018. This shows the rising power of the discount food retailer.
One of the consequences of the recession that has hit Europe since 2008 has been the rise in the smaller lower-cost food retailer and a decline with the more expensive supermarket. One of the smaller chains that has done best of all is Lidl, and current market predictions indicate that the chain could become the biggest across Europe over the next few years.
Reported by The Guardian, David Gray, author of a report compiled for Planet Retail, the consultancy firm has said: "This is an unprecedented power shift in European retail fueled by the near unstoppable growth of the discount format."
Gray's predictions are that the privately owned Schwarz Group, which is controlled by a German multibillionaire and owns Lidl together with the Kaufland hypermarket chain, will overtake French group Carrefour and Tesco to generate sales of €80 billion by 2018.
Lidl is a German global discount supermarket chain, based in Neckarsulm, Baden-Württemberg, Germany. The company operates over 10,000 stores across Europe. Lidl has a no-frills approach of keeping its products in the original delivery cartons, allowing the customers to take the product directly from the carton. When the carton is empty, it is simply replaced with a full one. Staffing is minimal, so that a profit can still be made even though the prices are low.
Lidl's current sales stand at €65 billion. These sales have boosted Lidl's parent company grow at a rate to nearly 5 percent a year for the next five years. A similar trend has been seen for another small size food retailer — Aldi's — which has seen growth at around 3.5 percent a year. In contrast mainstream supermarkets owned by groups like Carrefour, Tesco and Asda are seeing sales rises pf less than 2 percent a year.
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