German Supermarkets Aldi and Lidl Set to Create More American Bankruptcies

Bankruptcy

The Duo Plan to Open Thousands of Stores and Take Over the U.S. Market

Already-ailing retailers must now ward off another attack, this one coming from Europe as two massive chain stores look to enter the U.S. market and put other companies at risk.

Both Aldi and Lidl are planning on massive expansions into the U.S., planning to open thousands of stores and eat away at rivals’ market shares. Aldi announced that it would invest £2.7 billion to expand its U.S. store base to 2,500 by 2022.

Lidl, on the other hand, is looking to open its first 100 stores by June 15. Both companies are known for their bargain prices. This move could be dangerous for flagging retail stores that have not been able to keep up with e-commerce and the many different shopping options available.
If Lidl and Aldi can become massive successes in the U.S., then other retails will have to fall to make way, taking thousands of jobs with them.

Retailers and big-box stores in general have been unable to develop a sustainable business model since e-commerce and a great many other online options have sprouted up, making it difficult for consumers to find it necessary to leave the house to shop.

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While businesses like Wal-Mart Stores Inc (NYSE:WMT) have been able to adapt to the current industry realities, the introduction of Aldi and Lidl could spell trouble for even the healthier stores as the two German companies are looking to sell at even lower prices than their nearest competitors.

Such a move will be a boon to the American worker, because thousands of jobs will be created. However, it will also be a threat, because thousands of other jobs might be lost if the flagging American retailers are unable to keep up with the new supermarket introductions.
As it stands, it’s unclear just how many stores Lidl and Aldi will be able to topple as they come to the U.S., but if the companies are able to effectively put other rivals out of business with their extremely low prices, then we may witness another surge in retail bankruptcy as well as seeing hundreds, possibly thousands, of Americans out of a job.

Source:

ZE GERMANS ARE COMING! Lidl and Aldi plot to take over the US by opening THOUSANDS of new supermarkets forcing Walmart to slash prices,” The Sun, June 12, 2017.)

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