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A German grocery chain that's invading America is already dominating Walmart on prices - here's why it's so cheap

Mary HanburyAug 26, 2024, 15:24 IST

Business Insider/Hayley PetersonLidl's "fresh 5 specials" are promotions that change twice a week on a specific product.The European grocery chain Lidl has arrived in the US and bargain hunters should be excited.

A recent price check on a basket of 20 items by Jefferies analysts found that Lidl was about 9% cheaper than Walmart, the largest grocer in the US. Lidl claims to offer products for as much as 50% less than rival stores.

So far, Lidl has opened 10 stores along the East Coast and plans to open 80 by the middle of next year.

Lidl has already upended the grocery-store market in the UK, sending some of the largest supermarket chains into vicious price wars. Analysts are now expecting it to do the same in the US.

How does the grocery chain manage to keep prices so low?