BIG PLAYERS in the retail market are sharpening their knives ahead of the imminent launch of LiDL stores on the island.
The German discount supermarket chain, which operates some 9,000 stores worldwide, will be opening for business on November 4.
The company recently unveiled its 21,000m² distribution centre in Aradippou, Larnaca, but has been extremely tight-lipped over its planned operations.
Media reports, however, indicate LiDL will be operating 10 stores, in addition to the distribution centre, spread out among all districts except Paphos.
According to Kathimerini (www.kathimerini.com.cy), four stores will be located in Nicosia, and two each in the districts of Larnaca, Famagusta and Limassol. It is not yet known whether all 10 stores are to open simultaneously.
Main competitors Carrefour and Orphanides have meanwhile been intensifying their campaigns in the media with advertisements of special offers.
Kathimerini said also that the two chains are preparing to expand their islandwide operations in anticipation of the increased competition from LiDL.
The Orphanides chain is planning to open two new stores, one near Kiti in Larnaca, the other in the Pallouriotissa area in Nicosia and in close proximity to the existing Athienitis supermarket.
The nature of the competition is also expected to change, with the chains now shifting their attention to commercial areas rather than trying to snap up customers in remote locations as previously, in a bid to defend their retail market shares.
In Cyprus, LiDL is likely to maintain its longstanding policy of selling local products in addition to its own labels. Thus popular products such as KEO beer, Carlsberg and Cypriot wines will be available on LiDL store shelves.
It remains to be seen how LiDL’s pricing policy will pan out, assuming it secures the same prices from local suppliers but sells its products at a lower price despite lower profit margins.
Daily Phileleftheros said yesterday that supermarkets are pressuring suppliers not to provide LiDL with local produce, and have already terminated their collaboration with certain suppliers who have struck up partnerships with the German discount chain.
