Discounters in Finland

PROSPECTS

Lidl will continue its strategy of openness and adaptation to the local environment

Since the launch of Lidl in Finland, the chain has managed to reposition itself in an exemplary way. In the beginning, Lidl was synonymous with secretive and arrogant communications, and as such was treated with caution by entities such as trade unions.

Lidl’s expansion is gaining pace once again

In the first half of the 2010s, Lidl’s outlet growth slowed down markedly, although gained pace once again from 2015 onwards. However, the renewed rapid expansion meant negative growth in value sales in per outlet terms.

Lidl continues to say no to loyalty cards, but starts to offer online sales

The two biggest retailers in Finland, S Group and Kesko, are noted for their hugely popular loyalty cards, which can be used for collecting bonus points within and outside their retailing concepts. Lidl stands out as a company which has no loyalty programme; something it has even highlighted, to the extent that in 2018 it arranged a campaign during which customers could get a 10% discount by showing any card whatsoever to the cashier.

COMPETITIVE LANDSCAPE

Lidl has no competition in its channel

Lidl remains the only discounter in Finland. After the chain arrived in Finland in 2002, Kesko experimented with the Cassa chain, but its last outlets were closed in 2007.

Lidl increases its share, although a focus on cheap prices is not unique

Whilst Lidl’s value sales remain significantly below those of S Group and Kesko within overall grocery retailing, it has experienced consistent growth in its share. Although Lidl is not projected to ever come even close to the sales of the two giants, its ranking is also not threatened by companies which are currently smaller and run very different concepts.

No direct competitor in sight for Lidl

It is highly unlikely that in the foreseeable future any new local concept or foreign discounter chain could threaten Lidl’s unique position discounters, with S Group and Kesko focusing on developing their existing chains. It also remains very unlikely that a foreign player such as Aldi will focus on the Finnish market for a potential launch.

Files are delivered directly into your account within a few minutes of purchase.