German discount grocer Lidl is set to open its first 20 U.S. stores promising prices that will put pressure on competitors, Chain Store Age reports.
Lidl will open the new stores beginning June 15. The stores — in North Carolina, South Carolina and Virginia — are the first of up to 100 locations the grocer plans to open across the East Coast by next summer.
Lidl, which operates 10,000 stores in 27 countries, is known for its low prices, per Chain Store Age. The company says shoppers can expect prices that are up to 50 percent less than other supermarkets.
Lidl's merchandise mix will include standard grocery items, along with an on-site bakery, cheeses, fresh and frozen seafood, wines, organic foods and gluten-free options.
Costco's quarter: Costco's third quarter fiscal 2017 net sales rose 8 percent year over year to $28.22 billion, Retail Dive reports. Net sales for the first 36 weeks year-to-date rose 6 percent from the same period last year to $84.82 billion, per Retail Dive.
Same-store sales in the quarter, excluding gas and foreign currency fluctuations, rose 5 percent overall and 5 percent in the U.S., 3 percent in Canada and 6 percent elsewhere internationally. For the first 36 weeks of the year, same-store sales rose 3 percent overall. E-commerce sales rose 11 percent in the quarter, while revenue from membership fees rose to $644 million from $ 618 million last year.
Despite growing competition, Costco CFO Richard Galanti is confident and told analysts that he isn’t “really worried about what others are doing,” per Retail Dive.
The company's primary focus is on driving members into stores and enhancing its “treasure hunt” atmosphere, he said. He acknowledged that competition from Amazon and other players, including newcomer Lidl, will present challenges. But, he said, other retailers are likely to lose more market share than Costco.
Amazon appointment: Amazon has announced that Christine Beauchamp will succeed former President of Fashion Cathy Beaudoin, who exited in April after leading the e-commerce giant’s fashion division for eight years, Business of Fashion reports.
Beauchamp is currently a senior adviser at Boston Consulting Group. She began her career at Goldman Sachs and Boston Consulting Group before L Brands Chief Executive Les Wexner hired her to overhaul Express and Victoria’s Secret in 2003. Two years later, he named her president — and later chief executive — of Victoria’s Secret. She then spent four years as brand president of Ann Taylor, and also worked briefly at Ralph Lauren.
By: American City Business Journals.
Photo: Business Insider, UK.
Review: Emerging Market Formulations & Research Unit, Flagship Records.