Lidl U.S. Changes CEO Once More As Revolving Door Spins Again

So, it looks like fifth time lucky for German discounter Lidl, which is to get yet another CEO for the U.S. in just over a decade.

Longtime Lidl executive and former Lidl Poland president Michal Lagunionek is departing as president and CEO of Lidl U.S., to be replaced by Joel Rampoldt, after only being appointed to the helm in June 2021.

But like those before him, the American dream has been short-lived.

The fact of the matter is that in the U.S., Lidl bosses have come and gone at an alarming rate, while store expansion remains painfully slow.

Lagunionek took the reins in June 2021 after his promotion was initially confirmed in April of that year, becoming the fourth manager since the retailer first made underwhelming inroads into North America in 2013.

Lagunionek replaced Johannes Fieber in the position, who had led Lidl’s U.S. business since 2018 and helped ramp up expansion and redefine its strategy.

This time round, Joel Rampoldt will succeed Lagunionek as CEO of Lidl U.S., effective September, joining the German giant from AlixPartners where he is a partner and managing director.

Prior to joining AlixPartners in 2018, Rampoldt was a principal at consultancy KPMG from 2015 to 2018 and before that he was a partner at Oliver Wyman.

In his own LinkedIn bio, he says: “Working closely with executives and store associates, I help clients execute complex transformational programs. I specialize in programs where profit improvement is reinvested to drive top-line sales. I have a track record in achieving positive financial outcomes in comp sales, gross margin, cost of goods sold, distribution costs and shrink. “

The leadership change comes as Lidl continues to expand its U.S. footprint, including in the New York City market, though progress has not matched ambitions.

Lidl Grows on East Coast

Lidl, which established its U.S. headquarters in Arlington County, Virginia, in June 2015, and its first stores in 2017, operates more than 170 stores across nine U.S. States and Washington D.C., chiefly along the east coast.

The discounter announced the opening of a new regional distribution center in Cecil County, Maryland, in 2020, following a $100 million investment, which it said at the time would “serve as the backbone of Lidl’s regional store network”.

Still far behind fierce rival Aldi, which has around 2,400 U.S stores, after an initial surge of Lidl openings in 2017 and 2018, muted performance led management to rethink its original strategy. Instead of expanding into as many States as possible, the company has focused on the east to build recognition and reap the economic advantages of consolidation.

Fieber had led expansion toward neighborhoods that could be serviced from nearby distribution centers and Lagunionek continued that work.

He has been at Lidl for 20 years and was credited with leading Lidl’s rapid growth in Poland over the last decade and he would no doubt have hoped to establish a stronger tenure given Lidl’s CEO revolving door in the U.S., where he became the fourth boss.

Lidl Lay Offs Amid Restructure

In February of this year, Lidl laid off around 200 employees in its U.S. operations as it initiated a restructure of its business, with all the affected employees based at Lidl’s U.S. headquarters. The cuts brought Lidl’s corporate workforce in the U.S. from 1,000 to 800 employees.

“While we remain committed to the long-term success of Lidl U.S. and look forward to continuing our expansion along the East Coast, we are continually evaluating our operations to ensure we are supporting our stores effectively,” a Lidl U.S. spokesperson said at the time of the announcement.

Former Lidl Ireland CEO Ken McGrath (who left to become CEO of the Save A Lot chain before a quick about turn to become chair of the management board at Lidl) held the position between 2013 and 2015, before being replaced by another Lidl Ireland executive, Brendan Proctor, until mid-2018, when Fieber, the former CEO of Lidl Sweden, took charge.

As for Rampoldt, both he and Lidl need to prove they have staying power for the U.S. grocery sector.