SWOT analysis of Lidl

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This article is about a brief SWOT analysis of Lidl. It examines strengths and weaknesses of Lidl. It also examines the opportunities and the threats facing the company. If you are interested to learn about SWOT analysis in general, please read SWOT analysis – how to use SWOT analysis.

SWOT analysis of Lidl

We have conducted a quick and mini SWOT analysis of Lidl as follows:

Strengths (in the SWOT analysis of Lidl)

Lidl is a German grocer. It was founded in 1973. It is now one of the leading food retailers in Europe. Lidl has been in business in the UK since 1994. In fact, it is the 7th largest supermarket chain in the UK with 5.2% market share.

Lidl is one of the fastest growing supermarket chains in the UK. It now has over 650 stores and 10 distribution centers across the UK and employs about 20,000 people (Lidl, 2017). It also has over 10,000 stores across Europe and decided to open its first store in the USA on 15th of June 2017.

Lidl is a well-known discounter. However, it is more than a discounter. It is committed to providing customers with the highest quality products at the lowest possible prices. Lidl also focuses on selling locally produced products. For example, 70% of the company’s products offered in the UK come from British suppliers (Lidl, 2017).

Weaknesses (in the SWOT analysis of Lidl)

Compared to some other supermarket chains, Lidl has a relatively small number of employees in each store to help customers in product search and address their queries. This is a problem for some customers, as they sometimes need assistance in product-search.

Lidl’s reputation was at risk due to some controversies over the years. For instance, the company was accused of spying on its employees across Germany in 2008. Spying included but not limited to recording the number of times employees went to the toilet, and their very personal details (Conolly 2008). The accusation came from a German news magazine Stern which conducted an investigation in Lidl stores across Germany.

Opportunities (in the SWOT analysis of Lidl)

Lidl currently (as of December 2017) has 10,000 stores in 27 European countries. Therefore, growing further in Europe has good potentials and it is feasible as well. In fact, Lidl is one of the fastest growing supermarket chains in the UK.

Lidl has great opportunities to grow in the USA. Indeed, it has a plan to open as many as 600 stores in the country. However, Lidl should make cautious steps in the US as some other retailers e.g. Tesco failed in the country.

Threats (in the SWOT analysis of Lidl)

There are a number of competitors challenging Lidl in the UK and other European countries. One of the biggest challengers is Aldi as it is also a discounter. Other competitors in the UK are Tesco, Sainsbury’s, and Morrisons to name but a few.

Changes in consumer behaviour, and any political instability in Europe may impact on Lidl significantly. It may sound harsh; however, any increase in minimum wages may also impact on the company’s profits.

Hope the article has helped you explore SWOT analysis of Lidl. You may also like reading SWOT analysis of Tesco and  Marketing mix of Lidl. If you liked this article, please share it by clicking on the icons below.

The article publication date: 01 January 2018

Further Reading/References

Lidl (2017) About Us, available at: https://www.lidl.co.uk/en/About-Us.htm (accessed 22 December 2017)

Photo credit: www.pixabay.com

Author: M Rahman

M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He is a graduate of Leeds Metropolitan University and London South Bank University.