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How will Lidl change the face of retail?

Autor: Cristina Roşca

19.05.2011, 09:26 166

The arrival of Germany's Lidl onthe domestic market will change the face of Romania's modernretail, a business of EUR7-8 billion annually, with the company setto eat from the market share of the other discounters, as well asof large-format players.

The opening of the first Lidlstores, one of the most highly awaited events of the past threeyears, will make the battle of prices fiercer, considering price isthe most important purchase factor for Romanians.

"The opening of Lidl store chainwill have a deep impact over the domestic food retail market.Considering the experience of other European countries, Lidl istaking market share not only from discounters, but from other largeformats as well. Given the low level of the average income inRomania, I believe this consumer migration will be even greater inRomania," explains Gorkem Tursucu, general manager of ArchitectedBusiness Solutions (ABS) management consultancy.

There is no formula to predict theimpact Lidl will have on a market, believes Michael Weiss, avice-president of A.T. Kearney in Romania, one of the biggestinternational management consultancies.

He explains that if they continueopening stores along the same format, large players will not haveany competitive advantage, but on the contrary. Andreea Enache,senior marketing consultant with Ensight Management Consulting, isof the same opinion.

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