The German supermarket chain Lidl just opened its first US stores last week, and it’s already dominating America’s largest grocer, Walmart, on prices.
Lidl is about 9% cheaper than Walmart, according to a price check on a basket of 20 items by Jefferies analysts.
The price check also revealed that Lidl was 3% cheaper than its German rival Aldi and 16% cheaper than Food Lion.
This new competition is likely to put added pressure on US grocers to lower their prices at a time when food deflation is already weighing down margins.
In addition to low prices, the Lidl store also offered a premium shopping experience with impressive customer service and an attractive store design that seemed to come straight from US shoppers’ most beloved grocery chains like Publix and Costco, according to the Jefferies analysts.