Lidl Stiftung & Co. KG (pron.:
/ˈlɪdəl/
LI-dəl
or local
/ˈliːdl/
LEE-dəl;
formally Schwarz Unternehmens Treuhand KG) is a German global
discount
supermarket chain, based in
Neckarsulm,
Baden-Württemberg,
Germany,[2]
that operates over 10,000 stores across Europe. The company's full name
is Lidl Stiftung & Co. KG. It belongs to the
holding company
Schwarz Gruppe, which also owns the store chains
Handelshof and hypermarket
Kaufland.
Lidl is the chief competitor of the similar German discount chain
Aldi.
Origins and
history
The company was founded in the 1930s by a member of the Schwarz
family, and was called Schwarz
Lebensmittel-Sortimentsgroßhandlung
(Schwarz Assorted Wholesale Foods).
Lidl has since its opening in 1973 established itself in over 20
countries
throughout Europe. The name Lidl is the surname of a former business
partner of Josef Schwarz's, Ludwig Lidl, a retired schoolteacher, and
Josef's son Dieter Schwarz bought the rights to the name from him for
1,000 German Marks, as he could not use the name Schwarz Markt;
schwarzmarkt means "black
market". Lidl is part of the Schwarz Group, the fifth-largest
retailer in the world with sales of $82.4 billion (2011).[3]
In 1930, Josef Schwarz became a partner in Südfrüchte Großhandel Lidl
& Co., a fruit wholesaler, and he developed the company into a general
food wholesaler. In 1977, under his son
Dieter Schwarz, the Schwarz-Gruppe began to focus on discount
markets, larger supermarkets, and cash and carry wholesale markets. The
first Lidl discount store was opened in 1973, copying the Aldi concept.
Schwarz rigorously removed merchandise that did not sell from the
shelves, and cut costs by keeping the size of the retail outlets as
small as possible. By the year 1977, the Lidl chain comprised 33
discount stores.
Since launching in the UK in 1994, Lidl has grown consistently and
today has more than 580 UK stores. While it is still a small player in
the UK with a grocery market share of less than 5%, its importance along
with that of continental no-frills competitor Aldi is growing.
Amongst other brands, Lidl owns the Silvercrest brand, which
manufactures electronic products such as satellite and
Freeview receivers.[4]
Other services
In late October 2009 Lidl UK launched a DVD rental service 'Lidl
Movies',[5]
undercutting Tesco DVD rental, which had previously been the UK's
cheapest online DVD rental service.
The service is powered by OutNow DVD rental.[6]
OutNow went into liquidation in October 2011 taking Lidl Movies with it.[7]
Lidl UK has also launched an online photo service, which prints
photos and photo gifts at discounted prices.[8]
Approach to
retailing
Like fellow German supermarket
Aldi, Lidl
has a
no-frills approach of keeping its products in the original delivery
cartons, allowing the customers to take the product directly from the
carton. When the carton is empty, it is simply replaced with a full one.
Staffing is minimal, so that a profit can still be made even though the
prices are low. Together with Aldi, Lidl has carved out its own niche
with this approach. In contrast to Aldi, there are generally more
branded products on offer and while Lidl imports many low-priced gourmet
foods from Europe, it also sources many local products from the country
where the store is located. Like Aldi, Lidl has special weekly offers,
and its stock of non-food items often changes with time. Lidl operates
in many European countries (much of
Eastern Europe,
Italy and
Greece
as well as in
Ireland
and
Scandinavia). In contrast to Aldi, Lidl advertises extensively in
its homeland of Germany and other countries.
They have also sponsored Potters Bar Swimming Club in the United
Kingdom.
Criticism of Lidl's treatment of its staff
Trade unions in Germany and other countries have repeatedly
criticised Lidl for mistreatment of workers, breach of
European directives on working time and other abuses. These have
been published in the Black Book on the Schwarz Retail Company
published in Germany and are now also available in English.[9]
While The Times notes that Lidl managers work excessive hours,
being obliged to sign out of the working time directive when starting
with the company, both
The Guardian[10]
and The Times[11]
in the UK amongst other allegations have reported that Lidl spies on its
workforce with cameras, makes extensive notes on employee behaviour,
particularly focusing on attempting to sack female workers who might
become pregnant and also forces staff at warehouses to do
"piece-rate" work. Lidl management has denied the charges. In
Italy, in
2003, a judge in
Savona
sentenced Lidl for anti-union policies, a crime in that country.[12]
Lidl has been criticised in the
United Kingdom and
Ireland for not allowing workers to join unions.
In March 2008, the German news magazine
Stern released a cover story reporting systematic surveillance
of Lidl workers, including the most intimate details of their private
affairs.[13][14][15]
Countries with Lidl branches
As of July 2012, Lidl operated in every country of the
EU (except the
Baltic States).[citation
needed]
Current
Planned
| Country |
Opening |
Notes |
 Lithuania[21] |
2014–2015 |
first Lidl mall will be opened in city of
Alytus[22],
the company announced about plans to open stores in
Vilnius and other cities of Lithuania[23] |
 Serbia[24] |
2013–2015 |
first Lidl store will be open in city of
Zrenjanin; and the next in the city of
Subotica[25];
supermarket being built in
Novi Sad to be opened in 2013–2014[26] |
 United
Kingdom |
2013 |
Work has started on a new store which will be built in
Basingstoke, Hampshire. There are plans that the store should be
open by the end of 2013. |
Competitors
| Store |
Stores |
Country |
|
Aldi (Hofer) |
8,210 |
Europe,
USA,
Australia |
|
Netto |
1,200 |
Europe |
|
Biedronka |
1,500 |
Poland |
|
Farmfoods |
|
United Kingdom |
|
Home Bargains |
|
United Kingdom |
|
Netto Marken-Discount |
4,000 |
Germany |
|
Penny Market[27] |
5,000 |
Austria,
Czech Republic,
Germany,
Hungary,
Romania,
Italy |
|
Iceland |
682 |
United Kingdom |
|
Norma |
>1,300 |
Germany,
Austria,
France,
Czech Republic |
|
Poundstretcher |
|
United Kingdom |
|
Dia, in Portugal
Minipreço, in France
Ed (becoming Dia) |
6,833 |
Spain,
Portugal,
Turkey,
Argentina,
Brazil,
France |
| Eurospin |
|
Italy,
Slovenia |
|
Denner |
|
Switzerland |
|
Maxima |
459 |
Lithuania,
Latvia,
Estonia,
Bulgaria,
Poland |