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How Walmart Might Foil Incursions By Discount Grocers Aldi, Lidl

June 2, 2017: 12:00 AM EST
Walmart has been doing a good job of beefing up its e-commerce program to stay close to online retail competitor Amazon. But analysts say another big challenge is to better compete against the German no-frills grocery retailers Aldi and Lidl. That battleground is mainly about price, but not completely. Walmart’s U.K. grocery unit Asda, whose unique selling proposition was low prices, got beat in the price arena by Aldi and Lidl. It is still trying to recover. As the two German retailers expand their presence in the U.S., Walmart needs to make sure it is not out-discounted again. It also needs to make sure its house brands compete on quality as well as price. The good news is that the company’s growing e-commerce strengths could help it fend off low-tech discounter competition, especially if it continues to boost its shop-online/pick-up-in-store strategy. [Image Credit: © MidAmerica Nazarene University ]
Andrea Felsted, "Walmart's Big New Problem Isn't Amazon", Bloomberg , June 02, 2017, © Bloomberg LP
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