German Discounters Are “Disrupting” U.S. Retail Grocery Market

The combined sales of German discount grocery chains Aldi and Lidl in the U.S. could reach $67 billion over the next four years, according to two industry experts speaking at a food marketing conference. This will force U.S. grocery chains to re-examine their own business models while carefully analyzing why the discount model works so well. Aldi and Lidl will be disruptors and a “source of change influence” in the U.S. grocery business. But the two companies are also evolving, learning perhaps from their bigger competitors, by working to overcome product selection limitations, for example; renovating stores; moving beyond the “hard discount” model; creating a “hybrid promotional strategy’ that increases the size of sales flyers, and creates urgency with weekend deals, seasonal offerings and “while they last” promotions.