Two German discount retailers – one already a significant factor in the U.S. and the other about to open its first batch of new stores here – have announced aggressive strategic moves designed to expand their businesses in the Mid-Atlantic.
Aldi, which operates more than 1,600 U.S. stores in 34 states, will enhance its position in the market by investing $57 million to build a new 500,000 square foot distribution center and regional headquarters in Dinwiddie County, VA, just south of Richmond. The new facility, which will be located on an 80-acre site at the junction of U.S. Routes 460 and 1, is expected to add 145 new jobs
Lidl, a prime discount competitor of Aldi’s in Europe, has announced on its website that it is looking to fill store manager positions for 12 East Coast markets. Several sources have also told us that the big international discounter will likely open some stores before its previously announced 2018 debut. Lidl first announced it would be entering the U.S. in 2013 and last year unveiled its new $202 million commitment to the state of Virginia, including basing its U.S. headquarters in Arlington, VA and a building a new distribution center in Spotsylvania County.
Aldi’s decision’s to create a Central Virginia hub was first announced by Old Dominion Governor Terry McAuliffe.
“We’re proud to locate our new division headquarters and distribution center in business-friendly Virginia. The access to qualified and capable employees and transportation options first attracted us to this location, but it was the integrity and positive attitude of the Dinwiddie County leaders that truly won us over,” said Jason Hart, CEO for Aldi U.S., whose domestic headquarters are based in Batavia, IL. “Today, we have 32 Aldi stores in Virginia and we plan to open up to 60 additional locations across the Commonwealth over the next five years, helping more people save time and money by offering them premium quality groceries at everyday low prices in easy-to-shop stores.”
“The decision by Aldi to choose Dinwiddie County as their division headquarters and distribution center is a wonderful testament to Virginia’s economic development assets and competitiveness,” said Governor McAuliffe. “The Commonwealth continues to be a top state for the retail and distribution industry, and I am pleased to welcome one of the nation’s fastest growing retailers to Virginia. This announcement is a significant win for Dinwiddie County and a great step forward in our efforts to diversify and build a new Virginia economy.”
According to multiple sources, site work has begun on approximately 40 Lidl units (part of the initial group of about 100 stores which will stretch from New Jersey to Georgia) and those sources said that several of those stores could open as soon as mid-2017. The Lidl U.S model will be approximately twice as large of Aldi’s U.S footprint (36,000 square feet vs. 17,000 square feet) and will feature a broader perishables presentation.
Appearing on Lidl’s U.S. website over the past month were postings seeking store managers for a dozen markets which the discounter plans to enter, including: “Eastern DC suburbs;” Richmond; Norfolk; Culpeper, VA; “New Jersey/North Philadelphia suburbs;” Reading, PA; Raleigh, NC; Charlotte, NC; Winston-Salem, NC; Columbia, SC; Greenville/Spartanburg, SC; and Augusta, GA.
Lidl posted that its store management development program (SMDP) is a modular-based training program “whose goal is to recruit and hire talented, seasoned store management to prepare them to launch and successfully run a Lidl store in the U.S.”
The website also noted that candidates will spend the next few phases abroad in Europe to “learn the ropes and receive technical skills training in a live Lidl store environment.” Once training has been successfully completed abroad, candidates will return to the U.S to hire and develop their own store team.
“Upon completion of the training you will be part of a two-man store management team in-store that has full ownership of your store. You are responsible for hiring, KPIs (key performance indicators) and performance management in your store with the autonomy to make decisions that impact the business.”
