Dublin, Jan. 02, 2020 (GLOBE NEWSWIRE) -- The "Lidl 2019: Going Omni-Channel, Disrupting Itself Before Others Do It, Vertical Integration, Digitalisation and US Expansion" company profile has been added to ResearchAndMarkets.com's offering.

In 2019 Schwarz (Lidl and Kaufland) broke through the 100bn barrier in sales for the first time. The retailer grew by 7.4% to 104.3bn in 2018/19. Every two to three years the Schwarz Group has changed Lidl's CEO - and since 2014 there have been 4 different bosses.

At the same time, Lidl added 20bn in sales. This also means that sales growth has not been a factor in the management changes - mostly these were due to internal disputes and Gehrig seems to have a disruptive style that asks for frequent changes. So far this seems to be working.

And so, despite this remarkable success, Europe's biggest retailer is changing its business model once again. The things that will remain the same are low price focus and an extreme focus on efficiency in all business processes.

The things that will or have changed: (I) a focus on organics and environmental credentials, (II) increased vertical integration in all business processes around post-consumer (recycling and packaging) as a natural consequence of the success of producing its own private label products - and of course packaging is vital to the overall product proposition, (III) automation and digitalisation, (IV) the online push, arguably still in beta phase without full board commitment, and (V) US expansion, a massive opportunity for the company.

Lidl was first, ahead of Aldi, to innovate and move on from the hard discount business model of the past. The retailer did so by sprucing up its tired store estates and creating a better ambience in the store combined with an SKU range extension. This clear trading up strategy, which included permanent listings of FMCG A brands for the first time broke the mould and forced Aldi into copying the strategy.

According to the company, Lidl's current SKU count stands at 3,500, of which 25% are FMCG A brands (875 SKUs), the remainder is a private label (75%). However, the permanent listing of FMCG A brands had two negative consequences, a clear rise in complexity and cost as well as becoming price comparable, which wasn't an issue when Aldi and Lidl were predominantly private label only. The direct comparability of many products - especially the FMCG A brands listed by both retailers - has opened up a new opportunity. Lidl is feeling emboldened to attack Aldi, the clear price leader in Germany - a position Aldi has held for decades. The discounter has launched a new ad campaign and a new hallmark called Lidl price. Lidl has gained considerable experience with the promotions on FMCG A brands in recent years and this has led to the discounter undercutting Aldi's promotions as soon as they have been launched. This also shows that the lowest price is one of the best arguments for either Aldi or Lidl, despite all the trading up strategies.

Key Topics Covered:

• The concept
• An introduction
• Recent Key Developments
• Schwarz: Data and KPIs
• Lidl: The most internationalised and biggest retailer in the EU
• Strategy, Lidl 2019
• Vertical Integration, Lidl 2019
• Online, Lidl 2019
• Organics, Lidl 2019
• Digitalisation, Lidl 2019
• Outlook: Questions answered
• Recommendations, Lidl 2019
• Outlook

Companies Mentioned

• Aldi
• Bioland
• Casino
• Schwarz Group (Lidl and Kaufland)
• Tesco
• Tmall
• Walmart

For more information about this company profile visit https://www.researchandmarkets.com/r/zccy0g

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