New York, NY — Lidl, a German discount grocery chain, is opening its first stores in the US with prices up to 50 percent cheaper than local competitors. Lidl has 10,000 locations in 27 countries with another German based chain, Aldi being its top competitor. 20 new stores will open in Virginia and North and South Carolina on June 15. According to Reuters, within the next year that number should go up to 100 stand-alone stores, creating 5,000 jobs. Lidl’s in-house brands will make up 90 percent of products sold.
Competitors like Walmart and Aldi are pushing for 15 to 20 percent price reductions to keep up with the new chain. According to RetailWire, Aldi is also considering opening hundreds of new stores in places like California as well as investing in the remodeling of its 1,300 existing locations. Aldi and Lidl are both known for shaking up the market in Europe with their discounted prices that hurt the bigger retailers like Walmart. The multinational retail chain is worried that the same thing might happen in the states.