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Lidl goes to Ukraine

The Schwarz Group enters the next big market: Ukraine. It is assumed that Lidl will compete there with the local discounter ATB, which has a branch network of about 1,200 stores.

The schedule for the launch is open. Adam Miszczyszyn (47) is supposed to lead Lidl to Ukraine. This follows from an internal Schwarz letter to the group. The manager is officially introduced as Country Manager for Lidl Ukraine. The Miszczyszyn's appointment memo is signed too by Lidl CEO Gerd Chrzanowski and Purchasing Director Tim Bork.

For the first time since the start in the USA, the people from Neckarsulm are planning a large country again. With population of 41 million Ukraine has as many inhabitants as Poland, where Lidl has been on the market since 2002 and most recently net sales of the equivalent of 5.4 billion euros. Romania, which also borders Ukraine, has half as many citizens there Lidl has net sales of EUR 2.7 billion. The returns in Eastern Europe are considered above average. Double-digit market growth and increasing consolidation make Ukraine attractive for Lidl.

The Schwarz group discounter Lidl opened in Latvia last week and the company has confirmed its planned market entry in Bosnia in spring. The Schwarz Group's interest in Ukraine can be traced back to aircraft movements: last week a Lidl jet was on the move in Kiev and Odessa.

Domestic discounter ATB is the market leader in Ukraine

The market leader in Ukraine is the domestic discounter ATB, whose gross sales in 2020 will be in around 1200 branches the equivalent of 4.9 billion euros is estimated. Ukrainian discounter ATB-Market is copying Lidl and Aldi concept. At the moment there are 1224 discounters operate in 117 cities and towns in 15 regions of Ukraine. The managing director is Borys Markov. The range of offered goods comprises ca. 3,500 articles. ATB-Market was founded in 1993 in Dnipro as a group of six groceries. In 1998 the company received its current name ATB — a short name of AgroTechBusiness.

Number two is the supermarket operator Silpo with 2.1 billion euros, which belongs to the Ukrainian Fozzy Group.

With 26 stores and a turnover of 754 million euros in the 2019 / 2020 financial year,  German retailer Metro is in third place.

Auchan has 24 locations and generated sales of the equivalent of 457 million euros.

the Rewe Group sold its 35 Billa stores in and around Kiev in 2020.

Source: Lebensmittel Zeitung << Lidl geht in die Ukraine >>

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