Although hard economic times have proved to be a threat to the survival of business enterprises across the globe, it seems that Lidl has managed to take advantage of the economic crisis, and achieve a high level of growth.
In recent years, Lidl has managed to increase its share in the UK market, and based on its constantly low prices, this discount store chain currently represents a major threat to UK-based supermarket operators, such as Tesco and Asda, as it keeps attracting more and more customers who look to buy staple foods at discount prices.
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Lidl wants to take maximum advantage of the current economic climate that favors the selling of low-priced foods, and since the company has implemented this strategy profitably for over a few decades, it now wishes to invest its profits back into establishing new stores to cover new areas.
However, Lidl’s expansion is not always viewed in a positive light.
For example, its regional expansion results in putting under pressure the current tenants of commercial real estate properties who operate in the area, due to the hard cash offers made by Lidl to commercial land and property owners.
This change of ownership leads to the eviction of businesses that rent those properties, and as you can understand, this is not a pleasant situation for those businesses.
There are many enterprises that have been well established and have been running their operations for many years, with headquarters, offices, and branches based at the locations where Lidl intends to open its new stores.
Therefore, you can imagine that Lidl’s move to the area, which will lead to their inevitable eviction, will cause them major inconvenience.
On the other hand, it would be ideal if local companies that face the risk of being evicted could work together with Lidl, in order to find a mutually accepted solution that leaves everyone satisfied.
Letting locally-based enterprises continue to run their operations as usual, and not evicting them, could prove to be a great asset for Lidl.
For example, the company could grab the opportunity to build alliances and a good reputation among the local businesses and the community, which could help it to improve its corporate image.
In fact, by enabling other businesses to keep operating along its own operations, Lidl could enhance its strategy on Corporate Social Responsibility (CSR).
Building local alliances and good working relations with companies could help Lidl to emerge as a company that cares for the local communities and business environments, within which it operates.
Therefore, the company’s expansion should be seen as an opportunity to build stronger links with local entrepreneurs, and help boost the local economy.
This would have a positive effect on the company’s image, and actually play the role of a very effective marketing tool, which would increase the company’s sales even more.
Sources:
Lidl has come under fire for an ‘aggressive’ expansion plan that has left local businesses struggling to find new premises
2016 Retail foods United Kingdom – USDA GAIN reports