ATB competitor enters Ukraine: for whom Lidl will actually be a rival

The already existing competition in the Lidl market will not be shaken up much. At least not in the coming years.

This opinion was expressed in his blog on the website of the network. SPAR Roman Korsak, CEO of the investment group VolWest Group.

In his opinion, it is still impossible to fully answer the question: is there a place for another discounter on the Ukrainian market, the answer will come with time. The reason is that in Ukraine already presented a variety of possible formats for retail establishments, including: convenience stores, convenience stores, supermarkets, hypermarkets and, in particular, discounters.

You won’t surprise our market

According to Roman Korsak, Ukrainian networks will fight back “German” and become him worthy competitor. After all, our market can no longer be surprised by modern loyalty programs with mobile applications/chat bots, unique marketing campaigns, self-service checkouts, beautiful exteriors and interiors, modern store concepts, Internet platforms, etc.

Today, Ukrainian retailers have the same technologies, skills and knowledge as Lidl. And in general, compared to the European market, ours is very decentralized: each region has its own specifics, unique local products.

“At the local level, the local network knows and feels the buyer better than the global giant” Korsak wrote.

It should also not be excluded political aspect Ukrainian market.

“Individual regions are controlled by” their “people, and the interests of related retailers (locations for rent, building permits, commercial conditions, etc.) are lobbied at the top”, he added.

Places in Ukraine are occupied

According to the CEO of the investment group VolWest Group, the best locations in Ukraine are already long ago occupied players on the market.

“Lidl will either have to buy other chains, or open on the outskirts of cities, or open doors to doors with existing market players. In my opinion, the purchase option is more likely if Lidl is serious about capturing a large share of the Ukrainian market. Just high decentralization our market gives the German discounter this opportunity,” said Roman Korsak.

Ukrainian retailers will show “who is the boss at home”

The expert reassures that other networks should not be afraid of the arrival of Lidl.

“In my opinion, Ukrainian retailers are fully prepared to meet the German discounter and show who is the boss,” Korsak writes.

However, there will be those players on the market who get scared, close, sell out, or even worse – start playing price wars with the discounter.

“And this is a war on a foreign field, which will lead to 100% defeat,” says Roman Korsak.

Where will the first store open?

The first supermarket of the German chain Lidl, which can become a serious competitor for the Ukrainian ATB, may appear in Ivano-Frankivsk. This was stated by the head of the city.

He said that it was planned to open a hypermarket of the French family Auchan SA – “Auchan Ukraine” in the city. However, due to quarantine, this idea is now on pause.

Experts believe that the launch of the trading network will take more than a year, while there is still no official confirmation from the company. This is due to domestic politics – she does not advertise her plans.

Recall that Lidl has fairly low prices, and the network’s supermarkets have about two thousand unique products, but their number is small.

Earlier we said that the American Su-Jit Lin made her TOP-7 products from Lidl, which is going to the Ukrainian market and can compete with ATB, advises everyone to try them.