Bain: Aldi, Lidl Remain Potent Competitors

In its brief, “How U.S. Grocers Are Standing Up to Europe’s Hard Discounters,” Bain & Co. warns retailers in the U.S. not to underestimate Aldi and Lidl.

Although usually accounted discount grocers in the U.S., those companies have a relatively large assortment of value home goods, tools and other DIY items, and seasonal general merchandise.

Hard discounters have many things working in their favor, Bain pointed out. For one thing, U.S. shoppers who try the format typically like it.

In its recent Advocacy in Retail Study of more than 17,400 consumers, conducted in partnership with ROIRocket, Bain found that hard discounters lead in customer advocacy out of all grocer types designated for three of the four main shopper journeys, based on the Net Promoter System, a method of gauging customer advocacy. Also, wherever those stores are available, many U.S. shoppers are willing to add Lidl or Aldi to their shopping repertoire. In three representative markets studied, as many as 30% of shoppers at mass and traditional grocery stores also shopped Lidl and Aldi.