Lidl: The Hard Discounter

Authors: Govind, S; Chatterjee, P.
Source: ICMR Center for Management Research
Year: 2008
Number of pages: 15

[This document has not yet been rated] [You must be signed in as faculty to rate this document]   1575 views

Abstract:

Lidl Stiftung & Co KG is a Germany-based hard discount retailer. It was started in 1973 using the same principles as Aldi, the first and the largest discounter in Germany. Over the years, Lidl differentiated its strategies and developed a separate and distinct identity for itself not only in Germany but across Europe. It offered stiff competition to other discount retailers like Penny as well as to full-service, large format stores like Tesco. The case describes some of the ways in which Lidl managed to keep its costs low. Some of the challenges it faced, including allegations of poor treatment of employees, and the growing competition from full-service retailers who were adopting some of the practices of the successful discounters are also discussed. The case has the following objectives: (1) to understand some of the practices of a discount retail chain; and (2) to analyze the strengths and weaknesses of the company. This case is meant for MBA / PGDBM students and is designed to be part of the business strategy, marketing management / retail management curriculum. The teaching note does not contain an analysis of the case.