Lidl challenges Finnish retailers
The chain has managed to gain ground over the years, with consumers gradully becoming used to the no frills discount approach.
Since its arrival Lidl has been able to cement its market share in the Tampere region at around six percent. The chain is now present in about ten different locations in the region.
The new kid on the block has inspired the dominant market leaders - the Kesko and S-Groups to step up to the challenge and offer their own lines of budget products.
"Lidl’s strong emphasis on price has touched customers in a completely new way," said Jukka Tornberg, local manager of the Tampere Kesko supermarket.
In spite of Lidl’s undisputed position at the low-priced end of the retail food market, the German model hasn’t always meshed seamlessly in Finland.
In Finland, Lidl has had to lengthen its cashier points, introduce shopping carts and increase the proportion of local products.
Prices have also moved away from the norm present in central Europe, said Lidl area manager Virpi Kaikkonen.
"Every country has its own base pricing and different types of taxes. Finland’s location here in the north also creates its own logistical challenges," she pointed out.
Lidl plans to focus on refurbishing its existing outlets rather than expanding the network.
Source: yle.fi
