In just a few years, food retailerLidl has become one of the world's leading retailers. It's a veritable empire that this brand has succeeded in creating, thanks to a carefully thought-out evolution and strategy. In this article, we take a look at the strategy of Lidl, which has become the idol of the French.
Lidl was founded in Germany in 1930 by Josef Schwarz. Initially a food wholesaler, it was in 1973 that the retailer became a hard-discount specialist.
Their strategy is simple: offer rock-bottom prices using a well-honed technique:
- optimized, non-marketed sales areas,
- no service,
- reduced shelving costs,
- limitation of product references,
- lack of brand-name products.
This strategy will be Lidl's brand image until 2012, the year of great change. The evolution of this positioning is no accident. Indeed, after years of growth, Lidl began to stagnate and to appeal less to the French, who for their part have moved away from hard-discount. The French want quality products and pleasant sales areas, so Lidl has begun its transition.
In 2006, Lidl began integrating :
- brand-name products,
- fair trade products,
- organic products,
- fresh produce such as vegetables, bread, pastries, etc.
But that's not all: Lidl has also opted to modify its points of sale to make them more pleasant. Indeed, the in-storecustomer experience has become essential to a brand's development. Consumers want to experience a unique moment. Lidl has therefore taken matters into its own hands and made a number of improvements: modernization of sales outlets (automatic checkouts, etc.) and architecture (colors, lighting, materials), organization of shelves, marketed gondola headers, sales of non-food products.
This marked the beginning of mass communication. Whether it was about its products or its customer experience, the retailer decided to make a big impact: television spots, digital communication, advertising posters, distribution of almost 12 million leaflets: it's a fact, Lidl is everywhere.
A change of positioning that can only be described as a successful transition! A real success story. In 2022, Lidl exceeded the 100 billion euro sales mark. An exceptional result, marking an increase of 4.7% and validating the fact that Lidl has become the preferred retailer of the French.
By Selma Güler