US Shoppers' Appetite For Discounters

Lidl’s entry to the United States is a test of changing tastes of the American shopper. Will its offer of fresh food and private brands seduce consumers as it has in Europe? Or are American shoppers too attached to traditional brands, a vast range of products and their preferred grocer?

After one year, Lidl is succeeding in unexpected ways with US consumers, based on our research in 2017 and 2018. Consumers are shopping at Lidl more frequently. They are spending more there. And they are very satisfied, awarding the grocer an attractive Net Promoter Score (NPS). They particularly value Lidl’s fresh food offering and private brand products.

The initial success appears to signal a change in American shopping tastes. Lidl’s assortment and fresh food have had a positive reception, indicating that US shoppers may place less importance on a broad selection than previously thought and instead appreciate a curated choice. Moreover, 90 percent of the products available at Lidl are private brand, breaking the myth that Americans are not interested in these and will only choose well-advertised national brands.

This report examines the results from our third survey (April 2018), where we re-engaged and surveyed grocery shoppers who have been to LIdl in the US in the past year.