This is the second in a series of three posts after my visit to the grand opening of the Lidl stores in Greenville and Spartanburg, South Carolina. It has been widely reported that the store would have a very high penetration of private brand, and the reporting was accurate, the penetration easily exceeds 90% of the set.
But let’s look a little deeper, what makes up their private brand portfolio. The portfolio is organized into a rather traditional three-tiered structure. The retailer then adds specialty/niche or category focused brands or package designs for things like health and beauty, beer, and randomly nuts or seasonal products.
At its core, the portfolio is dominated by a national brand equivalent mid-tier that’s most surprising feature is that it is unbranded. The front of the pack is devoid of any name or logo. Not even the small wordmarks favored by Waitrose and Ikea. I cannot honestly say that I like this, the packs look fine on the shelf, but the unbranded products will certainly be lost in the average American pantry.
Lidl US, LLC
3500 S Clark Street
Arlington, VA 22202
Some of the products also carry the “Lidl Love it! Guarantee” mark on the back of the pack as well as exclusively at Lidl lock up.
|Best||Preferred Selection||Specialty imported food products from Belgium, Germany, Italy, etc.|
Unbranded/Organic Design (Lidl)
Unbranded/Gluten Free Design (Lidl)
|Traditional national brand equivalent private label products|
|Good||Unbranded/Essentials Design||A small selection of basic/extreme value products (coffee, condiments, salad dressings)|
Perhaps the most exciting part of the entire private brand experience in the store is Lidl’s unabashed confidence and pride in their products. They always have prominent placement and every endcap and corner are used to promote their own products. From their premium Preferred Selection to their amazing breadth of Organic products.
The store also featured a large set of specialty Italian products using the Italiamo private brand. This set is supposed to change throughout the year and feature other brands and specialty products designed to drive traffic and energy in the store.
Finally, there are seasonal products, cleaning and HBC and beer, this is where the store feels the most like an Aldi. They have clearly adopted a similar strategy and created a large portfolio of category relevant, credible sounding brands that fit squarely into the expected space in each category.
The first story in the Series: