We agree with Professor Jan Benedict Steenkamp as stated in his book, Retail Disruptors, that limited assortment deep discounters represent the largest disruption to grocery retailing in 50 years:
- They change every market they enter.
- They bought Walmart to their knees in the UK.
- When Lidl entered the North Carolina market last year, 5 Kroger stores closed shop, unable to compete with a new entity that conditions consumers to pay up to 55% less for quality food items.
Kroger is fighting back by leasing a small footprint of square footage real estate from a chain with over 9000 units in densely populated urban and suburban areas of America.