Key Takeaways

• Competing retailers set their prices for individual products, including staples, substantially lower in Lidl markets compared to markets where Lidl is not present.
• On average, competing retailers near Lidl stores set their prices approximately 9.3% lower than in markets where Lidl is not present, which is more than three times as much as was typically reported in other academic work on Walmart’s entry in a new market.
• Prices set by retailers in markets where Lidl operates vary considerably among the different supermarket chains.
• The price reaction results, on average, in substantial dollar savings for customers.
• Overall, significant cost savings can be obtained for consumers in markets where Lidl Operates, especially when taking into account that prices at Lidl stores are even lower.

Note: Working papers, including any findings, may differ from the final version chosen for publication in academic journals.

---

• Keyword(s):
• marketing 126

View Working Paper