Lidl U.S. to Generate $8.8B in Sales by 2023: Kantar Forecast
As German grocery chain Lidl gears up to enter the U.S. market by 2018, Boston-based Kantar Retail has released a forecast for the Lidl U.S.’ future performance, including the prediction that the chain’s American stores will generate $8.8 billion in sales by 2023 – larger than Wegmans Food Markets’ 2016 value of $8.1 billion.
As well as overall sales projections, the forecast covers store-based growth and sales per store, as well as information on how suppliers and retailers can plan against the launch.
Other top-line findings from Kantar Retail include:
- When rollout begins, Lidl U.S. will generate $7 million. There will be a considerable increase in sales in 2018-19, with many store openings falling into 2019
- Lidl U.S. is projected to open 100 stores annually, reaching 630 stores by 2023
- Lidl is targeting the East Coast, putting it into direct competition such retailers as Walmart, Dollar Tree, Food Lion, and Stop & Shop. Its growth is expected to outpace the market for some time.
- Early stores could generate an average of $10 million in sales, averaging $15.2 million in sales per store by 2023
In other Lidl news, the retailer has confirmed that it’s interested in expanding into Texas, according to a Dallas News report, although it hasn’t as yet identified any specific locations in the Lone Star State.