“The consumer goods category is covered in our stores by Lidl brands. If there is rising demand from our clients for a certain established brand, we will carry it,” Lidl representatives told ZF, one of the few pieces of information provided by the German retailer.
While private labels barely make up 20% of the product line-up of other modern retailers, in Lidl’s case the situation is exactly the opposite, with established brands accounting for less in the total. The retailer’s representatives did not provide any figures on the share of the private labels in the product line-up, though.
German retailer’s arrival on the market comes at a time when Romanians’ price sensitivity is very high. Under the circumstances, private labels have started gaining ground in Romanians’ shopping baskets.
Last year, private labels had reached a 28.1% market share in Hungary, in Poland had topped 21.2% and in the Czech Republic had hit 19%. In Romania, private labels held 5.8% of the total retail market. Sales of private labels in Romania rose by 57% in 2010 against 2009 and there is still growth potential.
Lidl representatives did not specify the country of origin or the producer of Baroni cold cuts or Pilos dairy. They say, though, that their list of suppliers also includes Romanians.
“Lidl uses as a source Romanian producers and suppliers whenever possible, provided that their products meet the standards of our company,” Lidl representatives say.
They also say they are further seeking new Romanian partners, because “spurring local production and expanding the range of Romanian products are among the company’s objectives”.
(English version by Catalina Apostoiu, editing by Loredana Fratila-Cristescu)