Lidl launches big in Switzerland
The German discounter is causing the branded goods industry in Switzerland to tremble: the chain plans to open stores in around 50 locations in the coming years. This is likely to put prices for branded goods under severe pressure.
The German discounter is causing the branded goods industry in Switzerland to tremble: the chain plans to open stores in around 50 locations in the coming years. This is likely to put prices for branded goods under severe pressure. Whether Lidl will come to Switzerland is out of the question. The only open question is how aggressively the German discounter intends to conquer the Swiss market. The company is known for its legendary PR strategies. On Lidl's first day of sales in Slovakia, for example, customers were generally granted a 90 percent discount. The fact that a fine was levied for selling below cost price further enhanced the effect of the PR campaign.
According to experts, Lidl's market entry in Switzerland will be a burden, especially for branded wholesalers such as Coop or Denner, as Lidl also sells branded products on its shelves. However, these are sold 10 to 20 percent cheaper at the German discounter than even the Prix Garantie line. In an interview with Cash, Coop is tellingly vague: "We are prepared and can react".
The ground-breaking ceremony for Lidl's future headquarters in Weinfelden took place in mid-October. Construction of the goods distribution center will also begin there in the spring. In an initial phase, the discount chain intends to operate primarily in German-speaking Switzerland, with 35 stores in this region alone. Around 300 jobs will be created in Weinfelden alone and around CHF 35 million will be invested.
According to experts, Lidl's market entry in Switzerland will be a burden, especially for branded wholesalers such as Coop or Denner, as Lidl also sells branded products on its shelves. However, these are sold 10 to 20 percent cheaper at the German discounter than even the Prix Garantie line. In an interview with Cash, Coop is tellingly vague: "We are prepared and can react".
The ground-breaking ceremony for Lidl's future headquarters in Weinfelden took place in mid-October. Construction of the goods distribution center will also begin there in the spring. In an initial phase, the discount chain intends to operate primarily in German-speaking Switzerland, with 35 stores in this region alone. Around 300 jobs will be created in Weinfelden alone and around CHF 35 million will be invested.
