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Italy: Discounter market share will grow

Discount Retail Chain Lidl Italy CEO, Massimiliano Silvestri, believes discount stores are poised to expand their market share in the coming decade significantly.


In an interview with the Italian daily Corriere della Sera, he recalled that discount stores accounted for 12.6% of the market in 2010, a figure that has now reached 23% and is expected to grow to 30% within the next decade, representing a growth worth €10 billion.

Lidl holds a 30% market share within the overall discount store sector, experiencing consistent growth in recent years driven by the €3.5 billion invested by the company in Italy over the past decade.


The discounter also exports Italian products worldwide, including food and beverages, generating €2.4 billion in revenue.


Food and beverage products account for 4% of its total export, with local produce like fruits and vegetables contributing €600 million, making Lidl Europe's leading exporter of Italian fruits and vegetables.


Focus On Private Labels

The company has focused on expanding its store network and offering a wide range of private-label products, 80% of which are sourced locally in Italy. This strategy has helped Lidl reduce costs and remain competitive, especially during inflationary periods.

Lidl's decision to prioritise customer affordability by slowing down price increases has resulted in a 5% increase in sales value and a 2% increase in sales volume in 2023.


Silvestri revealed that Lidl plans to invest €400 million over the next six months to open 40 more stores in Italy. As the Italian population ages and declines, Lidl anticipates attracting customers from traditional supermarkets and hypermarkets.


Lidl will invest €30 million in the next three years in self-checkout technology to offer a more convenient and efficient service.


The company believes that small local shops cannot adequately address the needs of today's consumers. Instead, Lidl is focusing on innovation, such as its loyalty app, to provide a personalised shopping experience and offer tailored promotions to its 3.5 million customers.


To support its expansion, Lidl is also investing in its logistics infrastructure. It recently opened its first logistics centre in Sardinia, in Assemini near Cagliari, which is also its twelfth in Italy, investing €70 million.


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