The Lidl branch in Madrid-Prosperidad is always busy, early in the morning. A colorful, mixed crowd comes through the doors: young people, who stock up on food for school or university, and older Spaniards, who do their weekly shopping here.
"The supermarket is close to my apartment. I like it, the prices are good. "
"Sometimes finding someone to help you is difficult. Of course, the employees are often at the cash register, where they can't leave, or they are stocking the selves."
Promotional goods, private labels and many organic products
The concept of Lidl is different than that of most Spanish chains. For example, the German discounter has - almost uniquely in Spain - the "Bazaar": tables with promotional items ranging from an 'Italian week' to anti-wrinkle cream to a hedge trimmer. In addition, there are high-quality private labels and many organic products: a food trend that is still quite new in Spain and to which the local supermarkets have hitherto been reluctant, says Erik Schlie, marketing professor and vice-dean of the IE Business School in Madrid.
But: "Agriculture has to follow suit. In this respect, one needs more and more certified organic agriculture here in Spain, which can then also supply. Overall, I believe that consumers want that. That they themselves want to have the choice: Now I'll choose an organic tomato, which is perhaps a bit more expensive, or a normal tomato, which costs almost nothing here. That will certainly be a topic in the future. "
Competition is about the prices
According to statistics, six out of ten Spanish households bought organic products last year, an increase of 20 percent over the previous year. Lidl was according to own data 2018 the supermarket chain with the most bio-goods in the assortment. Aldi is also increasingly focusing on organic products in Spain. Even such high-quality products are usually sold more cheaply by the German discounters than by their Spanish competitors.
"It's certainly questionable to see that a kilo of bananas is sold well below one euro. Because what then remains for the farmers in the Canary Islands, if the product does not come from Ecuador anyway? The same goes for oranges."
Lidl emphasizes that the chain always wants to offer the lowest prices on the market - but not at the expense of its suppliers. The concern has a responsibility to its producers, says the spokesman for Lidl Spain, Carlos Gonzáles-Vilardell.
"We are making long-term connections with them. We are not among the companies that only conclude short-term contracts. We want our suppliers to be able to develop sustainably - and have long-term planning security."
Many local markets are just old and dusty
But the success of Lidl in Spain is also related to the failure of other companies: Domestic supermarket chains Día and Eroski are economically not in great shape. Lidl exploits these weaknesses, says marketing professor Erik Schlie.
"Eroski and Día are supermarket formats, where as a German, who has lived here for ten years, I say: 'I find it old and usty'. I'm not going in there myself. And if I look at Lidl; how they have grown. Lidl has conquered the Spanish coast line. Wherever there are any Germans, both tourists and those who live there."
Over the past 25 years, Lidl has opened around 600 stores in Spain. In addition to Aldi and the Spanish company Mercadona - the undisputed market leader - the German group is the only supermarket chain on a growth path in Spain. Next year, Lidl plans to open 30 more supermarkets in Spain. "Made in Germany" at low-cost prices is conquering the Iberian Peninsula: The Spaniards like it.
Source: Deutschlandfunk
