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.
Gielens, K. (2018) The Competitive Price Effects of Lidl's Entry in the US Grocery Market. Working paper available at: https://pdfs.semanticscholar.org/56f8/e96f1032627f65eb74c1ffeb1147e22b188a.pdf?_ga=2.97087578.433367366.1574703170-10421900.1574703170