Lidl

Lidl is a company incorporated in Germany discount chain, which is represented in most countries of Europe. Lidl is part of the Schwarz Group, based in Neckarsulm.

  • 3.1 Working conditions at Lidl
  • 3.2 loss leaders
  • 3.3 working conditions at suppliers
  • 3.4 Privacy
  • 3.5 the right to exchange or cancellation
  • 3.6 Sale of Gold Coins

Business

History

The beginnings of the Lidl chain date back to the year 1930. At this time, Josef Schwarz became a personally liable partner (general partner ) in the tropical fruit wholesale business Lidl & Co. in Heilbronn. The company was renamed " Lidl & Schwarz KG " and expanded rapidly become a wholesaler for the entire food trade. After the company had been destroyed in 1944, the Reconstruction was completed within ten years. The company was awarded in 1954 in Heilbronn again a private residence and entered in the same year in the "A & O chain " one. Opened in 1968 the first supermarket under the name " Handelshof " in the Swabian Backnang. Four years later, Josef Schwarz moved the company headquarters to the nearby Heilbronn Neckarsulm. Josef Schwarz died in 1977 at the age of 74 years.

The company took over his son Dieter Schwarz, who for several years led the family business on the father's side. This had opened after joining his father's company in 1973 his first discount store market in Ludwigshafen in the oral Strasse. To avoid puns ( " black market " ), he remembered the old company name " Lidl " and secured from legally by he bought from a retired vocational school teacher Ludwig Lidl for DM 1,000 rights to the name.

When Joseph Black died in 1977, his son already had a network of 30 branches. By 1978 Black tested various store types. Then the final design of the Lidl discounter went into production. The activities were in the range of discount grocery stores ( small areas ) under the name Lidl as well as in the area of ​​hypermarkets and supermarkets ( large areas ) such as buying land, buying market, Concord and Handelshof divided. In 1988, Lidl claims to already 460 branches in the Federal Republic. After expansion Lidl in Germany, which was continued from 1990 ( opening of its first store in Chemnitz) in the new federal states, the international expansion began in 1989 with the market entry Lidl in France. 1992 was followed by Italy and the United Kingdom in 1996. Today Lidl stores exist in almost all European countries. In 1992, the Nanz shops chain were integrated.

With the withdrawal of the company's management in 1999, Dieter Schwarz transferred his share of tax saving on the non-profit Dieter Schwarz Foundation organization whose purpose is, among others, the promotion of science and research, art and culture.

Today, Klaus Gehrig 's successor as chairman of the board of the Dieter Schwarz Lidl Stiftung and thus the arm of the company. After Wilfried Oskierski followed in September 2008, Karl -Heinz Holland as CEO. Since March 21, 2014 Sven Seidel followed him in this office.

Structure

Lidl has the legal form of a foundation & Co. KG, which are subordinated to approximately 600 different country and service companies. Lidl Stiftung and the German management have their headquarters in spatially separate buildings in Neckarsulm.

In Germany Lidl operates 35 regional companies, which in turn (as of 2008 ) are managing about 3,000 stores. In each regional company, there are various departments such as logistics or sales. For all areas of a regional company a Regional Director is responsible, who performs this. The Regional Director is assisted by the under him sales manager.

The sales managers are subject to several sales managers, each responsible for a district sales of five to seven stores. A sales representative is at the same disciplinary authority and performs up to 100 employees. In a Lidl store there is a branch manager who is responsible for the training and the classification of the store staff and for the disposition of goods, billing and achieve the corresponding branch metrics.

Production plants

In 2008, the Solent GmbH was founded in Ubach- Palenberg. The company produces chocolate and related confectionery. With our own production Lidl wants to make more independent of suppliers. This is a new, previously the discounters are only entered as a dealer in appearance.

Also located in Ubach- Palenberg is the Bonback GmbH & Co. KG. The subsidiary produces baked goods since 2012 for the Lidl stores. It intends to expand production continuously.

Expansion

An international expansion is intense. End of 2006, real estate valued at one billion euros were sold to finance. In the meantime ( as of 2011) Lidl is represented with approximately 9,500 stores in 22 countries. In France, Lidl, for example, with 1,500 stores market leader in the discount segment. The entry into the Czech market (2003) was accompanied by scandals about the deforestation of protected trees. The expansion into the Baltic markets was halted in 2006 due to lack of success for the time being. Also in Norway reached Lidl only a market share of 1.5% and stopped for the time being further expansion. In March 2008 it was announced that the discounter separates from its 50 markets in Norway and delivers them to the Reitan Group. In addition to the branches and administrative and distribution are given. In Croatia, the first stores were opened on 23 November 2006. On 29 March 2007 Lidl also opened the first stores in Slovenia and accompanied enter the market with a large advertising campaign on television, in print media and billboards. In March 2009, the first branch was opened in Switzerland. Followed in 2010 entered the market in the Canary Islands, Bulgaria and Cyprus. 2011 LIDL bought the 107 operated by Plus stores in Romania and this Hapag re-flagged to October at the Lidl concept. To finance this expansion, a loan of 200 million euros in 2010 the EBRD approved.

2015 will be opened on the east coast of the United States, the first branches. Approximately 100 stores there should be a first step. A feasibility study for the extension was commissioned.

Austria

The Lidl Group is represented in Austria with the Lidl Austria GmbH. The corporate headquarters is located in Salzburg, two central warehouse will be entertained in Laakirchen and garbage village. From 2,900 employees in 2010 an annual turnover of ( estimated ) was generated 651 million euros with around 200 branches. On August 1, 2013 Alexander Deopito took over the management. Born in Austria, most recently served as director of international purchasing at Lidl Stiftung in Neckarsulm.

The market share of the Austrian food retail market has increased from 2007 to 2009 by 3.2% to 3.8%, with revenue of 510 million euros to 650 million euros. The sites increased during the same period by 21 to 189 The direct competitors in the hard discounter segment, the Aldi Süd subsidiary Hofer, has changed from 19.7% market share in this period to 19.8 %.

Lidl stores in Europe

Marketing

Lidl is one of Germany 's largest advertisers ( 2005 budget, according to Nielsen 397 million euros ). In this case, the company relies addition to the traditional forms of advertising such as leaflets and newspapers on the Internet. Television was used in conjunction with the pre-paid provider Fonic only for apprentices and commercials in 2007 until October 2008. Since October 2008, the own-brand products are marketed under the Lidl claim " Lidl 's worth " in television commercials advertised.

Staff

Lidl employs over 150,000 people worldwide, including around 50,000 in Germany. In the years 2005 and 2006, Lidl has drawn attention with public education campaigns effectively staged. This 1,000 new trainees should be set. Lidl offers among other things an education to retail sales personnel, office clerks, Warehouse Clerk or specialists in warehouse logistics.

Range

Food form the core range of the discounter. With over 2000 articles in German stores Lidl is situated atypically wide in this area; Competitor Aldi carries only 700 food items.

Lidl offers branded and unbranded products (fruits, fresh meat ) also - as usual at discount stores - products under own brands. These are about: Milbona (milk and milk products ), Dulano ( sausages ), Sondey ( baked goods ), Linessa ( low-calorie foods ), Freeway, Saskia ( drinks) and since 2006 Bioness ( organic food ); renamed because of trademark issues since 2009 in Biotrend. As the first discounter Lidl activities on 1 June 2006 with the own brand Fairglobe Fair Trade products in the range, especially coffee, tea, chocolate and sugar from developing countries. Chocolate own brand " Fin Carré " are produced according to own data since 2012 from Utz Certified - certified cocoa.

In addition to food and other everyday products Lidl offers weekly changing action item from various non-food areas, including some textiles, household appliances and electronic goods or leisure items. Larger notoriety achieved the computers offered for several years in alternating cycles under the logo Lidl PC.

As in the stores every week room for new action item needs to be created, not goods sold is partially stored in specially rented warehouse. The value of the stored there returns should be more than 100 million euros.

Lidl is also represented with various service portals on the Internet. The offer includes, among other things, a photo service, flower delivery, a travel portal and since November 2008 an online shop, is offered in the promotional goods. Furthermore performed special promotions on a regular basis in the branches. 2005, the discounter had sold the so-called Lidl ticket for the first time together with Deutsche Bahn, with the price of 49.90 € two -way trips in the second class on any domestic routes (even long distance ) were possible.

The Lidl offerings counted temporarily the Lidl sold in a large part of its support Greenpeace magazine. The cooperation between Lidl and Greenpeace found, however, quickly end as Greenpeace, the independence of its tests did not want to bring into disrepute and also because Lidl products were analyzed for pesticide pollution level. The located in 2005 temporarily in Lidl assortment shark steaks were removed after protests from the range.

Lidl also occurs as a mobile service provider under the name Lidl Mobile. It offered both voice and data-only tariffs.

Criticism

Working conditions at Lidl

Lidl has repeatedly come under criticism over the years. Subject were often the working conditions of employees. So accused unions, especially Verdi, the company to prevent the formation of works systematically. Verdi was 2004 Black Book on Lidl that will contain more points of criticism with regard to the personnel policy. End of July 2006 also appeared the Black Book Lidl Europe. 2004 Lidl received the alternative negative award Big Brother Awards, awarded with the participation of the Chaos Computer Club, in the category of work. From August 2005 until the summer of 2006, the anti-globalization network Attac together with the Left Party, a nationwide coordinated campaign against the working and production conditions of the discount through, which met with wide response. Günter Wallraff published in 2008 in "Time Magazine " article " Our daily bread " in which he criticized besides the poor pay and working conditions and safety deficiencies and hygiene conditions of a supply operation. Lidl responded to the publication of a public opinion.

Loss leaders

2005, the discount was convicted after a complaint by the Centre for Protection against unfair competition from the Oberlandesgericht Stuttgart because of loss leaders in the non -food sector (judgment of 30 June 2005, Case No. 2 U 7 /05), as advertised products already sold out in one hour were, whereas is have an up stock for at least two days for massively advertised products. 2011, there were in a same- mounted thing is another judgment of the Federal Court following a complaint by the Consumer Association of North Rhine -Westphalia.

Working conditions at suppliers

2007 Lidl is the Business Social Compliance Initiative ( BSCI) joined. The members of the BSCI have agreed to a code of conduct to regulate the working conditions within their supply chains. The code of conduct is, however, (CCC) permanently injured, according to the Clean Clothes Campaign in the supplier companies.

Although the textile workers in Bangladesh only 17 euro monthly wage be paid on (converted ) 10 Euro cents: Lidl has his own brand Livergy in these Bengali textile factories produce, as documented in a television report of the SWR site. The company recruited by claiming that sold her clothing was produced fair.

Privacy Policy

According to research by the news magazine Stern, Lidl have systematically monitored by detectives his own employees over several years in over 500 stores. When monitoring, inter alia, the employee toilet habits were recorded and filmed sporadically customers entering their PIN. The Federal Commissioner for Data Protection, Peter Schaar, rated this procedure as a serious breach of privacy. On 4 April 2008 the Lidl management was first known to reduce the camera monitoring in all Lidl stores in Germany, however, declared shortly afterwards, but increasingly focus again on video surveillance under the supervision of the former Federal Data Protection Commissioner Joachim Jacob. Because of spying on employees, the company must pay a total of 1.462 million euro fine, with around 350,000 euro penalty for non- appointment of data protection officers in all 35 distribution companies have been imposed.

After appropriate files had been found in a garbage can, it was announced in April 2009 that Lidl had logged the disease causes the employee. The group responded with the temporary exemption of Germany chief Frank -Michael Mros. Lidl confirmed that medical records at Lidl had been common practice, working with the lists had been recruited by December 2008. In August 2009, a fine of 36,000 euros was imposed as a result of the data scandal for the company.

Right to exchange or cancellation

A study published in September 2012 valid for Germany study bzvb ( Federal Centre Consumers' Association ) showed that Lidl in many cases - and apparently systematically - the customer's rights denies that this may have at BGB.

Sale of Gold Coins

The ARD magazine plus minus sent on 20 November 2013, present a report on sold by Lidl via the Internet gold coins. A Münzenpar cost 2500, - EUR; its material value was about 520 euro at the same time. Lidl wrote on request, the offer was directed " to collectors [ ... ] and not to customers who want to buy coins as an investment. " It is a coincidence that Lidl have taken the offer shortly after the inquiry from his site.

Action responsibility

2012 Lidl supported the German Cancer Aid with a customer action. The Cancer Aid received from the sale of seasonal quality brand in the weeks before Christmas cents per share as a donation. The action provided including a corporate donation total of 400,000 euros. Furthermore, let Lidl in Germany all reverse vending machines with a "Donate " button to equip. With this, the deposit value can be immediately donated to the board.

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