Stuck in the Middle Do Publix, Kroger, and Safeway worry about Lidl?

Last week our phones were ringing off the hook when Supermarket News reported that “German retailer Schwarz Group is speeding up a U.S. entry for its Lidl discount stores, including multiple job postings and reports that the retailer is establishing new U.S. offices and meeting with suppliers in Europe to determine their ability to distribute in the U.S.”

Foodservice Solutions® Grocerant Guru™ was pressed about which retailers would possibly be targeted or harmed by Lidl entrance into the Unites States market.  Our Grocerant Guru™ stated that “the legacy grocery retailers with a loyal following, solid local market-share and little current competitive threat would be targets. Companies that appear stuck in the middle of the grocery retail pack including Publix, Kroger, and Safeway”

Kroger, Publix, and Safeway each has a loyal brand following, however all have exhibited inconsistent quality fresh prepared food offerings.  Each appears slow to adopt grocerant niche marketing and brand messaging integration.  All while capitulating the perceived high end fresh prepared space to Whole Foods, Wegmans, Central Market. Simply put they are the chains that are Stuck In the Middle. 

Supermarket News reported that Lidl, “whose U.S. arm is doing business under the name MGP Retail Consulting, is targeting middle Atlantic states for sites. .. Officials of MGL issued the following statement: "As has been reported, Lidl is in the early stages of preparation to operate in the United States. We are taking steps toward that effort. However, we are not able to comment on any particular transaction at this time.” 

In-addition The Washington Business Journal “ reported that MGP has invested $56.6 million in a new headquarters building including a test kitchen, also in Arlington, VA” . Success does leave clues and Lidl has been successful in every country that they operate.  With a new test kitchen in hand U.S. consumers will have a new flavorful choice with competitive pricing. 

Are you interested in learning how Foodservice Solutions 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit:  www.FoodserviceSolutions.us for more information. 

UPDATE: 

Grocery Sector Sales Continue to Slide http://grocerants.blogspot.com/2015/06/reality-denial-ripples-through-legacy.html