by Jeff Metzger, Publisher Emeritus
“Breaking News 2026: Joel Rampolt Out as CEO of Lidl U.S.; Breaking News 2023: Michal Lagunionek Exits As CEO of Lidl U.S., Rampoldt Named New Chief Executive; Breaking News 2021: Johannes Fieber Leaving As Lidl U.S. Chief, Lagunionek is New CEO; Breaking News 2018: Fieber Replaces Brendan Proctor As CEO of Lidl U.S.; Breaking News 2015: Procter Named To Head Lidl US, McGrath Leaves; Breaking News 2015: Kenneth McGrath Named First Lidl U.S. Chief Executive.”
Do you sense a familiar theme? Beyond the carousel of executive changes, the answer really lies in Lidl’s inability to offer a shopping experience that connects with the American consumer.
It’s not that the German discounter hasn’t tried; but after nearly nine years of semi-ineptitude (the company opened its first store in Virginia Beach, VA in June 2017), it might be time to consider putting up the white flag.
Armed with bundles of capital based on the phenomenal success of the discount chain in Europe and Asia, Lidl brought in company veteran Kenneth McGrath (who led the retailer’s Irish unit) to help develop a plan to enter the U.S. That was in 2013 and McGrath (more on him later) didn’t even make it to the opening of the debut of that Virginia Beach store, exiting in 2015. However, the damage that McGrath (and his corporate superiors) caused still lingers today. The decision to enter new markets by directly acquiring expensive real estate to build its stores remains one of the most boneheaded decisions in American food industry history. And many of those locations weren’t in Bumfucter, VA, they were in expensive urban or suburban markets. The fact that the company also decided it wanted sites that would compete directly against proven discounters Walmart and Aldi made Lidl’s strategy even more confounding.
When the U.S. stores finally began to open, it became obvious that European thinking wasn’t translating well across the pond. As the “new guy in town” it’s always difficult to gain solid footing, especially since the established competitors can plan and adjust to your strengths. Except Lidl didn’t have many strengths. The stores were poorly merchandised and uncomfortable to shop in.
As more and more stores opened, the problems exacerbated and in 2018, Lidl brought in another company hotshot, Johannes Fieber, who had run the company’s Swedish unit. Under Fieber’s realm, the discounter began to make needed changes, including scrapping some planned future locations (where it still owned the real estate), leasing newer stores and revamping its merchandising and product mix.
It was also under Fieber’s watch that Lidl acquired 27 Best Market (primarily on Long Island) in late 2018 giving indication that the merchant was committed to the U.S. for the long-term.
And even though there were improvements, the changes weren’t enough to change the view from the middle or bottom (depending on the market). Fieber and Lidl parted ways in 2021 and the company brought over another European whiz kid – Michal Lagunionek who most recently had supervised Lidl Poland. Lagunionek lasted a little more than two years when the company sacked him.
What’s even more head-scratching is that Kenneth McGrath, the original U.S. CEO, was rehired by Lidl as deputy chairman in 2021 after a horrendous four-year tour of duty as rival Save A Lot’s chief executive.
In June 2023, Lidl named Rampoldt as its newest U.S. CEO. Rampoldt was the first American tabbed for the top U.S. job, but unlike his other failed cohorts, he had no direct retail experience. His entire career was spent on the consulting side of the business – Alix Partners, KPMG and Oliver Wyman. Advising food retailers from the c-suite and actually standing in the batter’s box are two totally different things.
So, now Rampoldt’s out to be replaced on an interim basis by another European -Marco Guidici who was serving as Lidl’s chief customer offer in the U.S. and has been with the retailer for about a dozen years including a stint as CEO of its Romanian division.
While Lidl keeps churning through its leaders in the U.S., their problems are clearly far more complex than any one person can fix. It may be time for the discount retailer to conduct a deep and honest self-analysis of its future in America.
Or as Kenny Rogers once sang: “You got to know when to hold ’em; Know when to fold ’em; Know when to walk away; And know when to run.”
I see Lidl’s U.S future somewhere between walking away and running.
