Ahold Delhaize will likely be pleased with the performance of its US operations in the first quarter of the year – the business posted a 1.1% increase in net sales, despite the calendar effect of Easter and an ongoing store refurbishment programme.
However, Lidl's planned expansion to one of the Dutch grocer's key target areas, New York's Long Island, could upset its growth plans somewhat.
'Several Waves' Of Openings
Last week, the discounter said that it is planning 'several waves' of Long Island openings, commencing early 2020, which will include new builds and converted Best Market stores in Plainview, Babylon, Huntington, and Center Moriches.
Lidl acquired 27 Best Market stores, including 24 on Long Island, in November, with the deal completed early this year.
"We are happy to soon bring Lidl's unique and fresh approach to grocery shopping to Long Island," Lidl US chief executive Johannes Fieber commented. "Our new stores will allow customers to save time and money each week with a simple and efficient shopping experience. We also look forward to celebrating our grand openings with many familiar faces from the local Best Market teams."
Notably, Lidl's press release on the new openings drew attention to the price-cutting effect that the discounter has on its locality.
'Shoppers in those communities will be the first to experience Lidl's simple and efficient approach to grocery shopping as well as Lidl's price-cutting effect in the region,' the statement read.
'A study from the University of North Carolina found that grocery stores located near Lidl stores dropped their prices for individual products by as much as 55%,' it added.
Ahold Delhaize Strategy
It's a mission statement that isn't likely to go unnoticed by Ahold Delhaize, which recently announced the acquisition of the King Kullen Grocery Co store portfolio, which includes 32 supermarket and five 'Wild By Nature' stores, as well as the use of corporate offices in Bethpage, New York.
Commenting on that transaction, the retailer's chief executive Frans Muller said that the transaction "underscores our commitment to further strengthen the positions of our great local brands in the U.S., both through organic growth and fill-in acquisitions".
In addition, in its quarterly results, Ahold Delhaize made reference to the fact that it is 'continuing the preparation' for the next phase of the rollout of its 'Re-imagining Stop & Shop' remodeling programme, which was introduced in Hartford, Connecticut towards the end of last year.
The focus area of its programme? You guessed it, Long Island.
Ahold Delhaize's US operations have made headlines in recent weeks due to strike actions at some 240 Stop & Shop outlets, which the retailer has now managed to put behind it; as Muller said in the group's quarterly report, "the period of the strikes has been challenging for everyone. However, we were able to reach fair and responsible agreements for our Stop & Shop associates in New England."
Lidl's forthcoming arrival to one of its core territories could be a headache of a different kind. [Picture by Tdorante10/WikimediaCommons]
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
