New retail powerhouse in the making?

Lidl, the German no-frills grocery chain, is shaping up as a potential retail powerhouse even before it opens its first U.S. store.



The company will generate $8.8 billion in sales by 2023, larger than Wegman’s 2016 value of $8.1 billion, according to a just-released forecast by Kantar Retail.



Lidl is expected to begin its U.S. store rollout in 2018. Kantar Retail estimates it will open about 100 stores per year, reaching 630 locations by 2023. Early stores could generate an average of $10 million in sales, averaging $15.2 million in sales per store by 2023



Lidl is targeting the eastern seaboard of the United States, putting it into direct competition with a number of retailers including Walmart, Dollar Tree, Food Lion and Stop & Shop, the report notes.



“Lidl has earned a reputation as an innovator,” Kantar Retail stated. “It regularly modifies its stores, adds new services, and tweaks its assortment to keep its offer fresh and relevant for shoppers. In effect, Lidl is a moving target, and excels at staying ahead of and adapting to changing trends.”



The Kantar Retail forecast includes overall sales projections, store based growth and sales per store as well as insights on how suppliers and retailers can plan against the launch.