Aldi, Lidl's Continued Growth Likely To Be 'Credit Negative' For The Competition: Moody's
Moody's has said that further market share and revenue growth by discounters Aldi and Lidl over the coming years is likely to restrict the credit quality of their main competitors.
The ratings agency said that it expects more market share gains to come for the two discounters, as they strengthen their appeal to more affluent customers, with improvements in shopping experience and product quality.
'However, despite adopting some features of traditional retailers, German discounters will preserve their historical strengths, with a focus on private labels, cost-efficiency and low prices,' Moody's wrote in its report, Food & Grocery – Global: Further market share gains by Aldi and Lidl will curb incumbents' credit quality.
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