Lidl

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Lidl Stiftung & Co. KG
Trading name Lidl
Type Private
Industry Retailing
Founded 1930; 83 years ago (1930)
Founder(s) Dieter Schwarz
Headquarters Neckarsulm, Baden-Württemberg, Germany
Area served Global
Key people Klaus Gehrig, Chairman
Products Discount store, hypermarket/supercenter/superstore
Revenue Increase 59 billion (2010)[1]
Parent Schwarz Gruppe
Website lidl-info.com
A typical Lidl store in Nottingham, England, opened in 2011. Products are stacked on removable pallets for easy re-stocking
A Lidl store in Middlesbrough, UK
A Lidl store in Lomma, Sweden
A typical Lidl interior
A fake Lidl store in Egypt (the company does not officially trade here)
Lidl store in a former railway station in Newcastle, Northern Ireland
A Lidl store in Police, Poland
European countries in which Lidl is active

Lidl Stiftung & Co. KG (/ˈlɪdəl/ LI-dəl or local /ˈldl/ 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. 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.

Contents

Origins and history[edit]

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[citation needed].

Amongst other brands, Lidl owns the Silvercrest brand, which manufactures electronic products such as satellite and Freeview receivers.[4]

Other services[edit]

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[edit]

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.

Lidl in the UK is generally open between 08:00 and closes at 20:00, 21:00 or 22:00 except on Sundays in England and Wales, where Sunday trading law limit them to six hours, and they open from 10:00 to 16:00 or 11:00-17:00

Criticism[edit]

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]

Operations[edit]

As of July 2012, Lidl operated in every country of the EU (except the Baltic States).[citation needed]

Current[edit]

Country Number of stores
 Austria 197[16]
 Belgium ~300
 Bulgaria 64 [17]
 Croatia 80[18]
 Czech Republic 220
 Cyprus 13
 Denmark 90
 Finland 140
 France 1,500
 Germany 3,300
 Greece 207
 Hungary 156
 Ireland 160
 Italy 550
 Luxembourg 6
 Malta 5
 Netherlands 340
 Norway 50 stores sold to Reitangruppen on 2008.[19] Now REMA 1000 stores
 Poland 525[20]
 Portugal 210
 Romania 155
 Slovakia 130
 Slovenia 36[21]
 Spain 500
 Sweden 151
 Switzerland 86
 United Kingdom 580

Planned[edit]

Country Opening Notes
 Lithuania[22] 2014–2015 The first store in Lithuania is expected to open in 2014 in Kaunas.[23] Stores in other major cities of Lithuania and its capital Vilnius are said to follow.[24]
 Serbia[25] 2013–2015 The first store will open in Zrenjanin, and the second in Subotica;[26] another will open in Novi Sad in 2013–2014[27]
 United Kingdom 2013 Up to 40 new stores planned.
 Australia 2014 First store outside Europe planned for Melbourne, currently sourcing sites
 Morocco 2016 Planned new supermarket in Casablanca.

References[edit]

  1. ^ Lidl set to power trade.
  2. ^ "Impressum." Lidl. Retrieved 28 September 2012. "Adresse: Lidl Stiftung & Co. KG Stiftsbergstraße 1 74167 Neckarsulm "
  3. ^ [1].
  4. ^ "Silvercrest Multimedia". Silvercrest Multimedia Lidl. Retrieved 20 August 2010. "Silvercrest is a brand of Lidl Stiftung & Co. KG, Stiftsbergstr. 1, D-74167 Neckarsulm" 
  5. ^ [2].
  6. ^ http://www.choosedvdrental.co.uk/dvd-rental-review/lidl-movies.asp
  7. ^ [3].
  8. ^ [4].
  9. ^ "Black Book on Lidl in English" (pdf). 
  10. ^ Pidd, Helen (14 March 2007). "Cheap But Not So Cheerful". The Guardian.
  11. ^ Boyes, R. (27 March 2008). "Lidl the Big Brother Supermarket Is Watching You". The Times.
  12. ^ "Il tribunale di Savona condanna Lidl Italia per comportamento antisindacale". Il Magazine. 9 July 2003.  (Italian)
  13. ^ stern.de - Überwachungsskandal bei Lidl (video) (German)
  14. ^ stern.de - Entsetzen über Lidls Stasi-Methoden (German)
  15. ^ stern.de - Zitate aus den Lidl-Protokollen (German)
  16. ^ "Lidl Austria Company Profile". Retrieved 27 October 2009. 
  17. ^ LIDL Bulgaria - Нашите Магазини
  18. ^ "Lidl Opens 80th Store in Croatia". Retrieved 27 July 2012. 
  19. ^ "Why did Lidl fail in Norway?". Retrieved 23 November 2012. 
  20. ^ "Lidl Polska Online". 
  21. ^ "Lidl Online Slovenia Store List". Retrieved 3 June 2009. [dead link]
  22. ^ [5]
  23. ^ Pirmasis „Lidl“ - Kaune
  24. ^ „Lidl” vadovybę Lietuvoje ugdys pats
  25. ^ http://www.b92.net/biz/vesti/srbija.php?yyyy=2011&mm=10&dd=21&nav_id=551213
  26. ^ http://www.subotica.rs/en/5655/i-lidl-u-subotici
  27. ^ http://www.021.rs/Novi-Sad/Vesti/Lidl-u-Novom-Sadu-sledece-godine.html

External links[edit]