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    Lidl has already „snatched“ three percent of the market

    In two months of its business activities in Serbia, German retail chain Lidl has already managed to “win” three to four percent of the domestic market.

    Spring estimates of the Commission for the Protection of Competition, which conducted an extensive research of the retail market, were that the German retail leader will take from five to seven percent of the market very soon.

    Once Lidl arrived in Serbia, independent experts and economists claimed that it could progress even more than that and take from 10 to 15 percent of the market in a year or two , while some other analyses showed that Lidl usually reached 10 percent of market in other countries in which it does business after 10 years of presence on the market.

    Lidl clearly used an excellent strategy for our market – low price above all – and managed to attract numerous consumers in Serbia in short time. Another good thing for consumers is that others responded with similar measure, by decreasing their prices.

    Sasa Djogovic of the Institute for Market Research also reminds on the first, saying that price decrease was the first thing that some retail chains did once Lidl started its business activities.

    “Lidl offered competitive prices and it is obvious that German chain studied Serbian market well before it arrived. The placed focus on low price, and everything else, including the price to quality ratio, is circumstantial for them,” Djogovic says for the “Danas” daily.

    Due to low purchase power of the Serbian citizens, as he says, the low price in this chain is the strongest link with which they can easily compete with all other competitors. However, a total of 19 Lidl stores in 14 towns cannot greatly damage business of the biggest players.

    Because of that, only small, neighbourhood shops, and there are almost 80 percent of them in Serbia, can be afraid of them.

    Izvor: Danas

    Foto: Promo

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