A new independent study by the University of North Carolina at Chapel Hill says that Lidl drives competitors to set prices of key staple products up to 55% lower than what they charge in markets where Lidl is not present. The study focused on the effect that Lidl’s entry into the United States has had on pricing policy for such competitors as Aldi, Food Lion, Kroger, Publix and Walmart.
The study was led by Katrijn Gielens, associate professor of marketing at the University of North Carolina Kenan-Flagler Business School, and was commissioned by Lidl. She found that Lidl exerted intense competitive pressure on food retailers in their trading areas. Her report states that the competitive pressure was three times greater than what took place when Walmart entered a new market.
As the data presented below shows, retailers typically have everyday prices that average about 25% above Lidl prices. Markedly more had to be paid at Kroger and Publix. According to the report, Publix was 100% higher, Kroger was 50% higher, Food Lion was 36% higher, Walmart was 9% higher and Aldi was 5% higher.
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