We all know that Lidl have been a consistent winner in UK grocery in recent years. And there’s no sign of this changing, with sales up 19% in Kantar’s latest reporting, and Lidl forecasting fifty new stores a year, going forward.
So they are winning, and set to continue. But how are they doing it, and what can we learn from them?
A key element of Lidl’s success is fully understanding category role, especially the role that categories play in the customer’s choice of store. Then acting decisively on that understanding, to make it count.
Any Retailer of scale will have people who know that bakery, fruit & veg and meat are categories that, if done well, can have real influence on store choice. It is obvious. But few, if any, of Lidl’s competitors can match the way they act on that simple insight. Few can match them on being better where it really matters.
Look at bakery. Excellent spotlighting to draw the shopper’s attention as they come into the store. High quality, fresh product. Strong category “body language” with good quality baskets and classy point of sale material. Better where it matters.
Look at fruit and veg. Set out with visible care, abundant, well-lit and with hero products to excite the customer (right now, loose cherries and vibrant red strawberries). Better where it matters.
Look at meat. Super fresh presentation behind glass, well butchered meat, beacon products such as spatchcock chicken and vacuum-packed dry-aged beef. Better where it matters.
Oh, and by the way they’re quite sharp on pricing, as you may have heard.
If you’re working in or with one of Lidl’s competitors, in one of these key categories, my advice is to take a look at what they are doing – a really honest look – and ask yourself “are we as good here, let alone better?”
So what is the learning? Take a clear-eyed look at which categories matter most for customers. Honestly assess where you sit versus competition. And don’t stop until you’re better than them.