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Lidl Romania

The supermarket was the first type of “western” store that appeared on the Romanian market after
1989. Lidl entered the Romanian market in 2005 through the Kaufland division, all part of Lidl &
Schwartz group. In February 2010 Lidl took over from the Tengelmann group the 100 discount
hypermarkets Plus. The following year the Plus hypermarkets were renamed Lidl and officially entered
the market as a discount hypermarket. In 2017 Lidl has more than 200 retail stores throughout the
country.
The main competitors in Romania in the discount hypermarket segment of Lidl are:
- Profi
- Macro (before known as Minimax)
- Kaufland
- Penny and Penny XXL (Rewe Group)
Based on the turnover, Lidl Romania ranks third among Romania’s retail sector after Kaufland and
Carrefour.

Profile of today’s customer:


Discount hypermarkets are the only modern retail stores that cover all the counties in Romania. In many
counties both Lidl and Kaufland are situated in close proximity of each other in the same shopping
location. Lidl offers above average quality products at low prices. When it first entered the Romanian
market it had to make sure that it is not perceived as a seller of low quality products because of its low
prices. The retail discounter achieved the current status and managed to position its brand in the mind
of the client through a good pricing strategy and cost optimization techniques.
Lidl offers Romanians quality products at the best prices, directly from the producers in a wide variety of
items. It appeals to its customers through:
- Proximity
- Freshness
- Local and international products
- Quality
- Good prices for consumers with all types of income
In addition, since 2016 Lidl targets travelers with its Lidl Tour program. https://www.lidl-tour.ro/
Current challenges:
At the end of 2017, modern retail in Romania represented 62.4 percent of the market and counted over
2,000 units. Its value exceeded EUR 11.1 billion, double the figure recorded in 2008, according to a
Euromonitor report. The main challenge for Lidl Romania is to retain its position in the top 5 retail
stores based on its turnaround in Romania. Other challenges for the discount store are:
- Retain loyal customers and acquire new ones
- Maintain the price-quality ratio of its products
- Continue sustainability activities (increase the recycled plastic used to create the packaging of its
products and continue the garbage selection activities)
- Maintain its position as the Top Employer in Romania
- Keep the ongoing weekly and daily promotions that assure customers will visit the store more
than once a week
- The communications team to continue building the customer relationship
- Maintain its position in the Top Social Brands Romania (the result of a complex analysis of the
activities of social media brands ranging from April 25, 2017 to April 25, 2018) -
2019 – 2020 Challenges

Carrefour is the only retailer that has launched independently an online store that sold products from its
entire FMGC portfolio. Mega Image started to collaborate with e-commerce retailer eMAG to sell its
products. However considering the placement of the Lidl stores and its business model, and e-
commerce store would not be feasible for the discounter.
Based on an inside socio-economic analysis, the CEO1 of Lidl Romania states that there are a few main
trends registered in the Romanian customers’ behavior, in 2017:
- the fact that people started going rarely to the supermarket, but they buy high volumes of
products
- An ‘’uptrade’’ tendency to go from mainstream to high quality products.
- In 2017 – the PRICE remained the most essential criterion in the acquisition process, but it
dropped in importance by comparison to the customer experience (politeness of the cashiers,
cleanness of the store)
- A drop in the proximity criterion, since it became a normality to have many stores within a 500m
radius.
- Focus on BIO products
- In 40% of the market, there isn’t any modern retailer =>> possibility of expansion
In the next two years to follow the discount retailer must manage several aspects in order to keep its
position on the market and in the mind of the consumers:
- Open other 10 stores and a new warehouse
- Develop tech solutions for its digital retail platforms at the international level in the Lidl Digital
Hub opened in Bucharest
- To continue to grow and increase the turnover above the market average each year
- To promote heavily the Lidl Tour services
- To increase the social media awareness
- Develop a mobile app that keeps customers updated
- Focus on BIO products
- Open new stores and deposits to reach 235 stores and the 5th deposit in Roman
On a more general look, all segments that make up the FMCG industry recorded increases last year
compared with 2016, the most pronounced being found in food (+ 9.3% in value) and non-alcoholic
beverages (+ 7% in value). Overall, local FMCG grew 7.4% in value in 2017, according to Nielsen Retail
Audit. Analyzing in detail, almost all categories increased in value last year, with champions in this area
being non-alcoholic beverages, meat products, beer and cheeses (plus alte date;)2.

1
https://www.magazinulprogresiv.ro/articole/wagner-lidl-polul-expansiunii-2018-va-fi-tot-bucurestiul
2
https://www.magazinulprogresiv.ro/articole/cum-schimba-trendurile-de-shopper-fata-industriei
Marketing Strategy Proposition
Customers are looking for good quality products at affordable prices and Lidl can easily offer them a
wide range of products, including its own products. After the economic crisis, the consumption of
imported products increased as their quality was considered higher with respect to local products.
Romanians take advantage and celebrate each time they have the occasion and by delivering custom
made products for each holiday will encourage purchase. The development of a mobile app that can
notify customers of the promotions and offers. Also, the app could be used to register purchases made
based on a code present on the receipt. The purchases could be transferred into discount points to be
used on the Lidl Tour program.

„Pe partea de e-commerce nu avem planuri concrete, ține și de strategia


companiei la nivel global. Există potențial în această zonă, însă există și mai
multe oportunități offline din punctul de vedere al expansiunii.”
Apply and continue the social responsibility and sustainability programs as stated in the 2017 report.3

3
https://www.lidl.ro/ro/Raport-de-sustenabilitate-7443.htm
Sources:
- http://www.zf.ro/wikizf/lidl-discount-s-r-l-8366598
- https://ro.wikipedia.org/wiki/Lidl
- https://www.lidl.ro/ro/istoric.htm
- http://agriexchange.apeda.gov.in/marketreport/Reports/Retail_Food_Sector_Bucharest_Roma
nia_2-6-2017.pdf
- http://www.beragua.com/en/docs/Romanian%20food%20retail%20market.pdf
- https://www.romania-insider.com/kaufland-investments-romania/
- https://www.romania-insider.com/romanian-retail-market-2017/
- http://business-review.eu/news/euler-hermes-estimates-the-romanian-retail-market-to-eur-40-
bln-in-2017-154312
- http://www.revistabiz.ro/strategie-pentru-viitor/
- https://www.retail-fmcg.ro/retail/lidl-romania-plastic-reducere.html \
- http://www.revistabiz.ro/top-social-brands-2018-download/
- https://www.click.ro/news/superjob/lidl-un-angajator-de-top-din-romania-de-ieri-si-de-azi
- http://www.zf.ro/companii/retail-agrobusiness/lidl-aduce-la-bucuresti-un-centru-de-excelenta-
in-it-17013874
- http://business-review.eu/news/analysis-romanias-retail-market-makes-quantum-leap-160563
- http://www.razvaniancu.ro/2014/02/06/lidl-retailerul-care-se-foloseste-cel-mai-puternic-de-
potentialul-de-marketing-al-oricarei-sarbatoare/#.WyeB8aczY2w