Cyprus-Forum.com

by **Sotos** » Thu Dec 15, 2005 2:02 am

DISCOUNT supermarket chain Lidl yesterday declined to comment on the slated launch of their stores on the island, a development that market analysts say would send shockwaves across the retail industry.

The Cyprus branch of the retail giant was set up more than two years ago, and has reportedly secured the necessary permits for its first store in Limassol. It has also registered its trademark insignia. In the meantime, repeated press reports of an imminent opening have proved wrong.

Amid rumours that the launch is in limbo because the relevant government services are dragging their feet and not granting final permission, the Mail yesterday contacted Lidl’s offices in Limassol. A company representative met all questions with a “no comment.”
According to reports, Lidl, which has a turnover of $33 billion and ranks 16th of among the top global retailers, has already recruited Cypriot staff and plans to open 15 stores.

Its first store in Limassol’s busy Omonia area – dubbed the ‘Bermuda Triangle’ – that will have a shop space area of about 1200 to 1500sq.m and parking space for up to 200 cars.
Lidl assembles prefabricated steel-structure stores that typically take just three to four months to set up, lending further weight to the hypothesis that logistics is probably not at the centre of the delays.

The chain’s success is based on its low-cost structure, with own-branded products it distributes to its worldwide stores in 26 countries at wholesale prices, while the absence of service staff and employment of counter staff that only accept cash keeps payrolls to a minimum.

It goes without saying that, to varying degrees, local supermarket chains – AlfaMega, Orphanides and Metro – will take a hit from the newcomer’s arrival on the island.

And the development would come on the heels of Carrefour-Marinopoulos’ recent takeover of the Chris Cash & Carry chain

When news of the German giant’s interest in Cyprus first surfaced, market analysts predicted a head-to-head clash between Lidl "and everybody else", with some retailers preparing themselves with own-label products and focusing more on service counters (butchery, charcuterie, dairy, fresh meat and vegetables, bakery) that Lidl cannot afford to have.
Lidl’s operation would also deal a blow to the small family businesses littering the cityscape, with POVEK (small shopkeepers association) voicing concerns.

For its part, the Consumers Association says the opening of another large hypermarket would provide healthy competition, and would provide consumers with more options.

by **voyou** » Thu Dec 15, 2005 12:47 pm

I am quite a fan of Lidl, It isn't just the food but the monthly items that they have on offer. Generally good quality.

I would understand the issues with local shops losing trade though. That's the EU for you.

But as far as I am concerned.. bring on Lidl.