Less choice, better prices

Lidl Malta, which opens three stores on April 24, will introduce a completely new retailing concept to the island: a choice of only 1,100 products. "The average supermarket stocks about 30,000 products while hypermarkets could stock as many as...

Lidl Malta, which opens three stores on April 24, will introduce a completely new retailing concept to the island: a choice of only 1,100 products.

"The average supermarket stocks about 30,000 products while hypermarkets could stock as many as 65,000," Malta manager David Gatt said, pointing out that the average household uses around 500 products.

"Lidl was a pioneer in this concept. We keep things simple and efficient and we translate this into savings for our consumers. We offer a choice of our own brand, other brands and local products.

"We also avoid unnecessary expense on the store fit-out."

A spokesman for Lidl said that the amount of products sold still made it a "one-stop shop".

"Until now Maltese consumers were used to traditional supermarkets, which offer a multitude of products. However, if we look at the successful history of Lidl in Italy, where the company started its business with just 600 items, we are sure that the Maltese customers will immediately recognise the several advantages and savings opportunities which our retail concept has to offer," he said.

Lidl does not operate franchises and sets strict standards on its outlets. For example, each store must have between 100 and 120 car parking spaces and should occupy around 1,000 square metres. The lay-out of each store is also similar so you can walk into any store anywhere and pick things off more or less the same spot on the same aisles.

The company so far employs 50 people, some of whom were trained at the dedicated Lidl Academy. The Sta Venera store, which has been at an advanced stage for some time, was used as a simulation site for the rest.

Lidl is expanding rapidly. Between 1973 and 1979 it only had a regional presence in Germany, going national in the 1980s. From around 500 stores at the beginning of the 1990s, it now has nearly 8,000 in over 20 countries. It is opening 30-35 stores every year in Italy alone.

The plans are to open the fourth store in Malta, in Safi, next October but others will follow should the market response be favourable.

However, the Lidl spokesman said that an increase in the number of outlets would not have any significant effect on prices.

"It would not reduce the transportation costs because our supply chain is based on direct store deliveries from our distribution centre in Italy.

"The selling prices of our products will not be the same as those in Italy due to the transportation costs involved. But transportation cost is an issue which affects the selling price of the entire Maltese market and not just Lidl.

"For this reason we are sure that our prices will be the best prices on the local market," he said.

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