Lidl Continues To Experiment in France

Lidl has unveiled a new version of its wine offer, named “La sélection du caviste” (the cellarer’s selection) In France. The initiative which is similar to Lidl’s “wine cellar” concept in the UK features new fixtures and fittings that are made from wine cases.

 

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Lidl is also looking to test Sunday morning openings at 76 of its stores over the next four month in response to new consumer habits and expectations of customers."  

The market share of discounters has steadily declined to 12.6% over the past year with Lidl and Aldi maintain share. This decline is a result of its two competitive advantages being relentlessly attacked - price and convenience.  Lidl faces unprecedented price competition from hypermarkets and supermarkets in France. Auchan, alone, plan to invest EUR200 million in pricing by 2016. This is adding to an already intense price war in France, with other discounters reacting by lowering prices themselves. Netto have responded most strongly, with a new pricing strategy, reducing prices on more than 1,000 SKUs.

The “premiumisation” of Lidl’s wine offer and longer opening hours are in line with Lidl’s continued softening model in France as it tries to improve its perception amongst shoppers and differentiate from both hard and soft discounters.