Low-cost German grocer Lidl is coming to San Antonio’s far Northwest side next year. Lidl, pronounced “lee-dell,” is rapidly becoming one of the world’s largest grocery and home goods retailers, with 10,000 stores in 27 countries.
Lidl purchased just over 5 acres in San Antonio to develop its first store here, according to an announcement from CBRE. It will reside in a planned retail development near the fast-growing Alamo Ranch Parkway and Lone Star Parkway intersection. Lidl is known for offering household goods and groceries at prices up to 50% lower than other supermarkets.
Lidl moved into the U.S. market this year – Its first stores opened this summer in Virginia, North Carolina, and South Carolina. Lidl currently has 30 locations in five states, according to its website.
Soon after, Lidl began buying up land around Texas and has, so far, spent more than $10 million on such purchases in North Texas, according to a Dallas Morning News story.
A map on the company website shows Lidl specifically targeting East Coast states, Ohio, and Texas. In San Antonio, Lidl has reportedly purchased land to build a store on the city’s Eastside as well.
Beethoven Maennerchor board member Tobias Klingelhöfer shops at Lidl when he visits his home in Munich, Germany. “It is quite popular in Germany. They have great prices and specials on computers, sports clothing, home decorations,” Klingelhöfer said. “I believe they can compete with H-E-B.”
H-E-B currently dominates the San Antonio grocery chain market with 121 stores, and a new store is coming to the Alamo Ranch neighborhood this November.
Another German grocery chain Aldi already has 1,600 stores in 35 states and expects to grow by another 400 of its no-frills stores by 2018. It is already operating 40 stores in the Houston area, Killeen, and College Station. Some say the discount grocery is taking aim at Whole Foods with a new store design. There are two Whole Foods stores in San Antonio.
Abiso Development will build a 30,000 sq. ft. shopping center adjacent to Lidl, along with another multi-tenant building on the corner of the intersection at Alamo Ranch and Lone Star parkways. Abiso is also expected to sign a lease with a national restaurant chain on that corner.
“Lidl was a pleasure to work with throughout this transaction, and we are excited to have them as our anchor for the project,” stated Blake Honigblum, managing partner at Abiso. “We look forward to providing the residents of Alamo Ranch with a neighborhood destination of restaurant and service providers, as well.”
Gene Williams of CBRE Retail Services represented Abiso Development in the sale.
“The thoughtful design of our project will encourage exploration of the surrounding tenant mix, and the addition of Lidl supports pre-leasing and brings a valuable neighborhood amenity to Alamo Ranch,” Williams stated.
Construction on San Antonio’s first Lidl outlet will begin later this year, and is planned to be complete in the fall of 2018.
Gensler is the architect, KFW the civil engineer, Metropolitan Contracting the general contractor, and Jefferson Bank is providing financing for the shopping center development.
