Abstract
Within the retail industry, the grocery discount segment has grown in importance during the last decades. Aldi and Lidl are the two leading grocery discounters worldwide. The present case study outlines the internationalization of Aldi and Lidl. Not only market entry strategies but also target market and timing strategies as well as the standardization-differentiation controversy are addressed.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
See Anonymous (2015a).
- 2.
See Anonymous (2014a).
- 3.
White (1995).
- 4.
See Lebensmittel Zeitung (2015a).
- 5.
See Warschun and Schmidt (2011, p. 4).
- 6.
See Colla (2003, pp. 58–59).
- 7.
See Roth (2016, p. 36).
- 8.
See Institute of Grocery Distribution (2011).
- 9.
See Lebensmittel Zeitung (2015c).
- 10.
See Borger (2015, p. 9).
- 11.
See Anonymous (2015b).
- 12.
- 13.
- 14.
- 15.
- 16.
See Olbrich and Peisert (2004, p. 52).
- 17.
See Lebensmittel Zeitung (2008).
- 18.
See Brandes and Brandes (2015, p. 16).
- 19.
See Brandes and Brandes (2015, p. 11 and p. 16).
- 20.
See Brandes and Brandes (2015, p. 14).
- 21.
See Brandes and Brandes (2015, p. 96).
- 22.
See Lebensmittel Zeitung (2008).
- 23.
- 24.
See Planet Retail (2008).
- 25.
See Anonymous (2017).
- 26.
See Keuchel and Kolf (2016, p. 6).
- 27.
See Planet Retail (2008).
- 28.
See Lebensmittel Zeitung (2007, p. 28).
- 29.
- 30.
See Kolf and Ludowig (2015, p. 1).
- 31.
See Seidel (2015, p. 6.)
- 32.
- 33.
See Lebensmittel Zeitung (2008).
- 34.
- 35.
See Lebensmittel Zeitung (2008).
- 36.
See Brandes (2001, p. 123).
- 37.
See von Schlautmann (2008).
- 38.
See Dagens Næringsliv (2008).
- 39.
See Biehl (2006).
- 40.
Translated quotation that appeared in VG (2007).
- 41.
See Jensen and Schwarzer (2009, p. 64).
- 42.
- 43.
See Planet Retail (2008).
- 44.
See Brestel (2005, p. 24).
- 45.
See Anonymous (2004, p. 16).
- 46.
Martin Bailie as cited in Creevy (2008).
- 47.
- 48.
- 49.
- 50.
See BBC (2014).
- 51.
See Rudolph and Meise (2012, p. 147).
- 52.
- 53.
See Anonymous (2012).
- 54.
See Anonymous (2013).
- 55.
See Anonymous (2016).
- 56.
See Euromonitor (2016).
- 57.
See Anonymous (2014b).
- 58.
See Jensen and Schwarzer (2014a).
- 59.
See Anonymous (2011b).
- 60.
See Anonymous (2011a).
- 61.
See Anonymous (2014c).
- 62.
See Seidel (2015).
- 63.
- 64.
See Anonymous (2014e, p. 18).
- 65.
See Anonymous (2015c).
- 66.
See Kontio (2013).
- 67.
See Preuß (2017, p. 2).
References
Aldi. (2016). Press releases: Aldi Set to REEL in customers with new chilled seafood lines. Website of Aldi. Accessed May 23, 2017, from https://www.aldipresscentre.co.uk/press-releases/view/176
Anonymous. (2003). Lidl hängt Aldi beim Wachstum ab. Website of Spiegel Online. Accessed August 4, 2008, from http://www.spiegel.de/wirtschaft/0,1518,270587,00.html
Anonymous. (2004, June 5). Aldi im Wal-Mart-Land. Frankfurter Allgemeine Zeitung, p. 16.
Anonymous. (2005, June 16). Lidl-Gruppe wächst um 40 Prozent. Frankfurter Allgemeine Zeitung, p. 17.
Anonymous. (2010). Aldi verlässt Griechenland. Website of Handelsblatt. Accessed June 20, 2016, from http://www.handelsblatt.com/unternehmen/handel-konsumgueter/rueckzug-aldi-verlaesst-griechenland/3492242.html
Anonymous. (2011a). Durchschnittliche jährliche Wachstumsrate im Lebensmitteleinzelhandel in China zwischen 2000 und 2010 und Prognose für 2010 bis 2015 nach Segmenten. Website of Statista. Accessed June 22, 2016, from http://de.statista.com/statistik/daten/studie/217008/umfrage/wachstumsrate-im-lebensmitteleinzelhandel-in-china-nach-segmenten/
Anonymous. (2011b). Grocery retail revenue distribution in China in 2010, by segment. Website of Statista. Accessed June 22, 2016, from http://www.statista.com/statistics/277354/grocery-retail-revenue-distribution-in-china-by-segment/
Anonymous. (2012). Was deutsche Firmen sich in China erhoffen. In: Website of Handelsblatt. Accessed June 22, 2016, from http://www.handelsblatt.com/unternehmen/industrie/chancen-und-risiken-was-deutsche-firmen-sich-in-china-erhoffen/7067596.html
Anonymous. (2013). Leading foreign retail chain operators in China by retail sales in 2013. Website of Statista. Accessed May 8, 2015, from http://www.statista.com/statistics/289220/china-leading-foreign-retail-chain-operators/
Anonymous. (2014a). Produkte, Filialen, Marktmacht: Das unheimliche Geflecht der Supermarkt-Riesen. Website of Focus. Accessed June 20, 2016, from http://www.focus.de/finanzen/news/so-kaufen-wir-ein-schlechtere-qualitaet-weniger-auswahl-wie-diese-vier-supermarkt-riesen-unseren-einkauf-diktieren_id_4159487.html
Anonymous. (2014b). Retail giant carrefour to exit India, shut down 5 stores. Website of The Times of India. Accessed June 22, 2016, from http://timesofindia.indiatimes.com/business/india-business/Retail-giant-Carrefour-to-exit-India-shut-down-5-stores/articleshow/37980823.cms
Anonymous. (2014c). Discounter feilt an Einstieg in US-Markt. Website of Handelsblatt. Accessed June 22, 2016, from http://www.handelsblatt.com/unternehmen/handel-konsumgueter/lidl-will-expandieren-discounter-feilt-an-einstieg-in-us-markt/11158468.html
Anonymous. (2014d). So reisen Sie günstig mit Aldi-Fernbussen durch die Welt. Website of Focus. Accessed June 20, 2016, from http://www.focus.de/finanzen/news/unternehmen/aldi-reisen-so-reisen-sie-guenstig-mit-aldi-fernbussen-durch-die-welt_id_3698109.html
Anonymous. (2014e, December 3). Deutschlands Discounter sind angriffslustig wie lange nicht mehr. Frankfurter Allgemeine Zeitung, p. 18.
Anonymous. (2015a). Forecast for global retail sales growth from 2008 to 2018. Website of Statista. Accessed June 22, 2016, from http://www.statista.com/statistics/232347/forecast-of-global-retail-sales-growth/
Anonymous. (2015b). Umsatzverteilung im Lebensmitteleinzelhandel in Deutschland nach Betriebsformen in den Jahren 2004 bis 2014. Website of Statista. Accessed June 28, 2016, from http://de.statista.com/statistik/daten/studie/6310/umfrage/umsaetze-im-lebensmitteleinzelhandel -seit-2004/
Anonymous. (2015c). Umsatz der 100 größten Online-Shops in Deutschland im Jahr 2014. Website of Statista. Accessed June 22, 2016, from http://de.statista.com/statistik/daten/studie/170530/umfrage/umsatz-der-groessten-online-shops-in-deutschland/
Anonymous. (2016). Walmart needs to grow overseas, and China’s the big prize. Website of Chicago Tribune. Accessed May 23, 2017, from http://www.chicagotribune.com/business/ct-walmart-china-20160601-story.html
Anonymous. (2017). Umsatz von Aldi weltweit in den Jahren 2006 bis 2015 (in Millionen US-Dollar). Website of Statista. Accessed May 10, 2017, from https://de.statista.com/statistik/daten/studie/504231/ umfrage/umsatz-von-aldi-weltweit/
BBC. (2014). Five ways Aldi cracked the supermarket business. Website of BBC. Accessed 22 June 2016). http://www.bbc.com/news/blogs-magazine-monitor-28421722
Biehl, B. (2006, August 18). Mission discount. Lebensmittel Zeitung, pp. 5–6.
Borger, S. (2015, September 17). Brutaler Preiskampf: Die deutschen Discounter Aldi und Lidl bringen die britischen Einzelhändler in Nöte. Berliner Zeitung, No. 217, p. 9.
Brandes, D. (2001). Konsequent einfach – Die Aldi Erfolgsstory (4th ed.). Frankfurt/Main: Campus.
Brandes, D., & Brandes, N. (2015). Bare essentials: The Aldi success story. Wien: Linde Verlag.
Brestel, H. (2005, November 5). Der Aldi-Effekt. Frankfurter Allgemeine Zeitung, p. 24.
Colla, E. (2003). International expansion and strategies of grocery discount retailers: The winning models. International Journal of Retail & Distribution Management, 31(1), pp. 55–66.
Comtesse, M. (2017). Hier kommen die Aldi-Kinder. Website of Berner Zeitung. Accessed May 23, 2017, fromhttp://www.bernerzeitung.ch/wirtschaft/unternehmen-und-konjunktur/Hier-kommen-die-AldiKinder/story/22548164
Creevy, J. (2008). Martin Bailie: A Lidl goes a long way. Website of Retail Week. Accessed June 22, 2016, from http://www.retail-week.com/martin-bailie-a-lidl-goes-a-long-way/1892190.fullarticle
Dagens Næringsliv. (2008). Derfor Floppet Lidl. Website of Dagens Næringsliv. Accessed June 22, 2016, from https://www.dn.no/nyheter/naringsliv/2008/03/14/derfor-floppet-lidl
Dawson, J. (2000). Retailing at century end: Some challenges for management and research. The International Review of Retail, Distribution and Customer Research, 10(2), pp. 119–148.
Euromonitor. (2016). Grocery retailers in China. Website of Euromonitor. Accessed June 22, 2016, from http://www.euromonitor.com/grocery-retailers-in-china/report
Hecking, M. (2014, July 28). Das Albrecht-Vermächtnis. Wirtschaftswoche, pp. 46–49.
Heilmann, D. (2008). Briten entdecken Aldi und Lidl. Website of Handelsblatt. Accessed September 10, 2008, from http://www.handelsblatt.com/unternehmen/handel-dienstleister/briten-entdecken-aldi-und-lidl;2034251
Hein, C. (2012, December 10). Indien öffnet Lebensmittelhandel. Frankfurter Allgemeine Zeitung, p. 14.
Hickmann, M. (2008). Aldi and Lidl Head Upmarket in Britain. Website of Bloomberg. Accessed June 22, 2016, from http://www.bloomberg.com/news/articles/2008-10-21/aldi-and-lidl-head-upmarket-in-britainbusinessweek-business-news-stock-market-and-financial-advice
Hielscher, H. (2015). Lidl schlägt Aldi im Internet. Website of Handelsblatt. Accessed June 22, 2016, from http://www.handelsblatt.com/unternehmen/handel-konsumgueter/discounter-rivalen-lidl-schlaegt-aldi-im-internet/12273390.html
Institute of Grocery Distribution. (2011). European discount retailing: Traditional classification of the discount channel. Website of IGD. Accessed June 22, 2016, from http://www.igd.com/Research/Retail/European-discount-retailing/
Jensen, S., & Schwarzer, U. (2009, November). Alles außer Tritt. Manager Magazin, pp. 63–66.
Jensen, S., & Schwarzer, U. (2012). Discount-Krösus Aldi macht mobil. Website of Manager Magazin. Accessed June 22, 2016, from http://www.manager-magazin.de/magazin/artikel/a-825498.html
Jensen, S., & Schwarzer, U. (2014a, May). Panik-Attacken. Manager Magazin, pp. 28–34.
Jensen, S., & Schwarzer, U. (2014b). Aldi expandiert nach China. Website of Manager Magazin. Accessed June 22, 2016, from. http://www.manager-magazin.de/unternehmen/handel/aldi-expandiert-nach-china-a-1003921.html
Keuchel, J., & Kolf, F. (2016, June 2). Am Nasenring durch die Manege. Handelsblatt, pp. 1, 4–7.
Kolf, F., & Ludowig, K. (2015, November 10). Attacke auf Aldi. Handelsblatt, p. 1.
Kontio, C. (2013). Aldi Süd setzt massiv auf Online-Werbung. Website of Handelsblatt. Accessed June 22, 2016, from http://www.handelsblatt.com/unternehmen/handel-konsumgueter/abkehr-von-print-aldi-sued-setzt-massiv-auf-online-werbung/8017860.html
Lebensmittel Zeitung. (2007). Der Lebensmitteleinzelhandel in Europa 2007. Frankfurt/Main: Deutscher Fachverlag.
Lebensmittel Zeitung. (2008). Unternehmensportrait der Aldi Gruppe. Website of Lebensmittel Zeitung. Accessed October 10, 2008, from http://www.lz-net.de/unternehmen/handel/pages/protected/show.prl?params=suchid%3D643217%26quelle%3D2&id=83&currPage=
Lebensmittel Zeitung. (2015a). Top 10 Lebensmittelhandel Europa 2015. Website of Lebensmittel Zeitung. Accessed June 22, 2016, from http://www.lebensmittelzeitung.net/handel/Top-10-Lebensmittelhandel-Europa-2015-119237
Lebensmittel Zeitung. (2015b). Top 10 Lebensmittelhändler Welt 2015. Website of Lebensmittel Zeitung. Accessed 27 June 27, 2016, from http://www.lebensmittelzeitung.net/handel/Top-10-Lebensmittelhaendler-Welt-2015-119207
Lebensmittel Zeitung. (2015c). Top 6 Discounter Deutschland 2015. Website of Lebensmittel Zeitung. Accessed 22 June 22, 2016, from http://www.lebensmittelzeitung.net/handel/Top-6-Discounter-Deutschland-2015-119206
Lebensmittel Zeitung. (2015d). Aldi und Lidl in Europa: Marktanteile, Umsätze und Filialen. Website of Lebensmittel Zeitung. Accessed 27 June 27, 2016, from http://www.lebensmittelzeitung.net/handel/Europa-Karte-von-Aldi-und-Lidl-Marktanteile-Umsaetze-und-Filialen-im-Vergleich-120205
Lebensmittel Zeitung. (2015e). Top 10 Discounter Welt 2015. Website of Lebensmittel Zeitung. Accessed 22 June 22, 2016, from http://www.lebensmittelzeitung.net/handel/Top-10-Discounter-Welt-2015-119231
Liebmann, H.-P., & Zentes, J. (2001). Handelsmanagement. München: Vahlen.
Lingenfelder, M. (1995). Die Europäisierung des Lebensmitteleinzelhandels im Lichte politisch-rechtlicher und gesamtwirtschaftlicher Entwicklungen. In H. Bauer & H. Diller (Eds.), Wege des Marketing, Festschrift zum 60. Geburtstag von Erwin Dichtl (pp. 267–306). Berlin: Duncker & Humblot.
Louven, S. (2005). Aldi setzt Mobilfunkbranche unter Druck. Website of Handelsblatt. Accessed June 22, 2016, from http://www.handelsblatt.com/unternehmen/it-medien/kampf-um-marktanteile-aldi-setzt-mobilfunkbranche-unter-druck/2587620.html
Nielsen. (2002). Universen 2001 – Daten zum Handel in Deutschland. Website of Nielsen. Accessed October 14, 2008, from http://de.nielsen.com/pubs/documents/universen_2001.pdf
Nielsen. (2008). Universen 2008 – Handel und Verbraucher in Deutschland. Website of Nielsen. Accessed July 22, 2008, from http://de.nielsen.com/site/documents/Universen_2008.pdf
Nielsen. (2015). Deutschland 2015: Handel, Verbraucher, Werbung. Website of Nielsen. Accessed June 22, 2016, from http://www.nielsen.com/content/dam/nielsenglobal/eu/nielseninsights/pdfs/Universen_D_2015_Internet.pdf
Olbrich, R., & Peisert, R. (2004). Die Wahl internationaler Standorte durch europäische Handelsunternehmen: Strategiemuster, empirische Befunde und Handlungsempfehlungen. In A. Dieter, O. Rainer, & S. Hendrik (Eds.), Internationalisierung von Vertrieb und Handel (pp. 43–64). Frankfurt am Main: Deutscher Fachverlag.
Ough, T. (2016). Price cuts weigh on Aldi’s profits as it unveils £300m upgrade for stores. Website of Telegraph. Accessed May 23, 2017, from http://www.telegraph.co.uk/business/2016/09/26/price-cuts-weigh-on-aldis-profits-as-it-unveils-300m-upgrade-for/
Peitsmeier, H., & Heeg, T. (2004, December 12). Die Discounter unter Druck. Frankfurter Allgemeine Sonntagszeitung, p. 35.
Planet Retail. (2008). Global Retailing Information. Website of Planet Retail. Accessed October 14, 2008, from http://www.planetretail.net/OnlineShop/RetailShopHome.aspx?Section=1&PType=1&PageID=1&ProfileTypeID=1
Preuß, S. (2017, February 17). Lidl wartet ab. Frankfurter Allgemeine Zeitung, p. 22.
PwC. (2012). PwC-Exportbarometer der deutschen Ernährungsindustrie. Website of PricewaterhouseCoopers. Accessed 22 June 22, 2016, from http://www.pwc.de/de/handel-und-konsumguter/assets/pwc_ exportbarometer_der_deutschen-ernaehrungsindustrie_mai_2012.pdf
Roth, T. (2016). Battle of the giants: How Germany’s retailers are conquering the world. Handelsblatt, global edition, Spring/Summer 2016, No. 1/16, pp. 32–38.
Rudolph, T., & Meise, J. N. (2012). More with less: The Aldi approach for European retailing. In T. Rudolph, B. B. Schlegelmilch, J. Franch, A. Bauer, & J. N. Meise (Eds.), Diversity in European retailing: Text and cases (pp. 141–153). Wiesbaden: Springer Gabler.
Schmid, S., Dauth, T., & Kotulla, T. (2009). Die Internationalisierung von Aldi und Lidl – Möglichkeiten und Grenzen bei der Übertragung von im Inland erfolgreichen Geschäftsmodellen auf das Ausland. Working Paper No. 46, ESCP-EAP Wirtschaftshochschule Berlin, Berlin.
Schmid, S., Dauth, T., & Kotulla, T. (2010). Aldi and Lidl: International expansion of two German grocery discounters. In P. Ghauri & P. Cateora (Eds.), International marketing. (3rd European ed., pp. 566–571). Maidenhead: McGraw-Hill.
Schmid, S., Dauth, T., & Kotulla, T. (2013). Aldi und Lidl: Zwei deutsche Discounter auf Expansionskurs. In S. Schmid (Ed.), Strategien der Internationalisierung (3rd ed., pp. 533–579). München: Oldenbourg.
Seidel, S. (2015, November 10). Kampf der Discounter. Handelsblatt, pp. 4–7.
Stock, O. (2004). Aldi greift in der Schweiz an. Website of Handelsblatt. Last accessed June 20, 2016, from. http://www.handelsblatt.com/unternehmen/handel-konsumgueter/schweiz-gilt-als-attraktiver-aber-schwieriger-markt-aldi-greift-in-der-schweiz-an/2339872.html
Twardawa, W. (2006). Die Rolle der Discounter im deutschen LEH. Marken und Handelsmarken im Wettbewerb der Vertriebskanäle für Konsumgüter. In J. Zentes (Ed.), Handbuch Handel: Strategien-Perspektiven-Internationaler Wettbewerb (pp. 377–393). Wiesbaden: Gabler.
Van den Steen, E., & Lane, D. (2014). Aldi: The dark horse discounter. Case study by Harvard Business School, Reference No. 2—714—474.
VG. (2007). Lidl stenger fem butikker i Norge. Website of VG. Accessed June 22, 2016, from http://www.vg.no/nyheter/innen riks/mat/lidl-stenger-fem-butikker-i-norge/a/140864/
von Schlautmann, C. (2008). Lidl zieht sich erstmals aus einem Land zurück. Website of Wirtschaftswoche. Accessed August 4, 2008, from http://www.wiwo.de/handelsblatt/lidl-zieht-sich-erstmals-aus-einemland-zurueck-269979
Warschun, M., & Schmidt, P. (2011, July). What traditional retailers can learn from the discounters. Chicago: A.T. Kearney.
White, A. (1995). Cross-border retailing: Leaders, losers and prospects. Financial times management report. London: Pearson.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Questions
Questions
-
1.
Mintzberg states that, in addition to planned strategies, we can also find emergent strategies.
-
(a)
What evidence do you observe for the emergent character of strategies in the case of Aldi and Lidl? What reasons may be behind the fact that not all of Aldi’s and Lidl’s strategies were carefully planned?
-
(b)
Do you believe that Aldi and Lidl would have been equally or even more successful if they had planned their strategies more carefully? Please justify your reasoning.
-
(a)
-
2.
Porter distinguishes between cost leadership, differentiation and focus strategies.
-
(a)
How would you characterize Aldi’s and Lidl’s strategies in terms of Porter’s strategy options?
-
(b)
What are the advantages and disadvantages of Aldi’s and Lidl’s strategies compared to other strategic alternatives (in terms of Porter’s strategy options)?
-
(a)
-
3.
One option within internationalization strategies is greenfield investment. Although Aldi and Lidl entered some foreign markets via acquisitions (see, for instance, the acquisition of Hofer by Aldi in Austria in 1967), they mostly opt for greenfield investments.
-
(a)
Please discuss the reasons why Aldi and Lidl are choosing greenfield investments as their primary market entry strategy.
-
(b)
If you were a member of the Aldi or Lidl top management team, would you recommend alternative market entry strategies in the future? Please justify your reasoning.
-
(a)
-
4.
Both Aldi and Lidl are active in the discounter segment of the retail market. Simultaneously, there are similarities and differences between the two firms.
-
(a)
Please establish an international SWOT analysis for Aldi and Lidl. To simplify your analysis, please focus on the home market of Germany and two other foreign markets. You are invited to use the information from the case and additional sources.
-
(b)
Please illustrate the similarities and differences of the two firms based on your SWOT analysis.
-
(c)
Based on your SWOT analysis, which company (i.e., Aldi or Lidl) will, in your opinion, be more successful over the next 10 years? Please use several criteria that help you define and operationalize success.
-
(d)
What recommendations would you give Aldi and Lidl with regard to their strategic development for the next 10 years? Please elaborate in detail on corporate, business and selected functional strategies.
-
(a)
Please note that, for some of the questions, the case study is only a starting point. You will have to search for additional information to answer the questions.
Rights and permissions
Copyright information
© 2018 Springer International Publishing AG, part of Springer Nature
About this chapter
Cite this chapter
Schmid, S., Dauth, T., Kotulla, T., Orban, F. (2018). Aldi and Lidl: From Germany to the Rest of the World. In: Schmid, S. (eds) Internationalization of Business. MIR Series in International Business. Springer, Cham. https://doi.org/10.1007/978-3-319-74089-8_4
Download citation
DOI: https://doi.org/10.1007/978-3-319-74089-8_4
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-74088-1
Online ISBN: 978-3-319-74089-8
eBook Packages: Business and ManagementBusiness and Management (R0)