As Best Market Vanishes, Pay Raises Appear for Lidl

As it continues to grow its presence on Long Island, N.Y.—and puts it predecessor in the rearview for good—Lidl said it was also raising the starting pay of its workers.

The increase, to $16.50 an hour, is effective for stores in Nassau and Suffolk counties beginning March 8 and marks the second starting wage rate raise for Lidl’s Long Island units in 18 months. The company in September 2019 set a $15 rate for workers as the company transitioned acquired Best Market stores to the Lidl banner. The new wage goes into effect concurrent with the closure of the final Best Market stores that seeded Lidl’s invasion of the territory. The company has been gradually closing and/or replacing the Best banner, which it acquired in late 2018, with stores under its hard discount format.

The move—which comes as supermarkets cautiously monitor new debate over a $15-per-hour federal minimum wage—also highlights how Lidl’s introduction of an efficient and simple format can support higher wages while maintaining what experts say are similar or superior profits per store. Lidl stores eschew high-service departments requiring specialists, and a wide selection of branded goods provided by a distributor in favor of a cross-trained workforce of generalists and a tight assortment primarily of self-sourced and self-distributed goods. Lidl in 2019 also touted a boost in benefits for workers, extending healthcare to all part-time employees in a move officials said would aid in attracting and retaining workers. And earlier this year, Lidl raised its hourly starting rates in stores in greater Atlanta, another market it is keen on further penetrating.

Lidl said the new hourly rate on Long Island will affect 300 workers immediately, along with others expected to join as the company transitions from flipping acquired units on Long Island to building new ones. Nassau and Suffolk counties currently require a starting wage of $14.

“Lidl is committed to offering team members on Long Island a market-leading wage and benefits package,” said Eoin Byrne, chief human resources officer for Lidl U.S.  “We are proud to provide our team with the support they need to be at their best and serve our customers.”

Best Market’s Final Farewell

With this week’s scheduled opening of a converted Best Market in the Nassau County town of Massapequa, Lidl will have opened 10 stores on Long Island since late 2019, with around 12 new food markets to come before the end of the year. Lidl acquired 27 Best Market stores and its Bethpage, N.Y., headquarters in the Best deal. Several of those units are currently closed and undergoing transition, including stores in the Long Island towns of West Babylon, Commack, Shirley and in Astoria, Queens.

The three remaining Best Markets on Long Island—stores in New Hyde Park, Riverhead and Great Neck—are closing before the end of the month with some now conducting clearance sales. Lidl is expected to relocate the first two: The Great Neck store will not reopen as Lidl, joining a few others that didn’t make it to the transition.

Johannes Fieber, Lidl’s U.S. CEO, shared photographs on LinkedIn this week showing officials signing ceremonial cornerstones to be laid as part of a forthcoming new build on Long Island, representing additional growth beyond the Best footprint on Long Island. The post, along with a spokesman for Lidl, did not identify a location for that proposed store.

Local Officials About Face

Lidl’s announcement of the wage increase included remarks from local officials applauding the news, including some that had previously been outspoken in their criticism of Best Market and its history of tangles with organized labor unions that represent many of its local competitors.

“One undeniable truth about the COVID-19 pandemic is that it has shed a spotlight on the critical role that essential workers play in keeping our economy moving and families secure during times of need,” said Suffolk County Executive Steve Bellone. “Lidl’s new market-leading wage and benefits package is deservedly raising the bar for compensating grocery store workers who have gone to work each day to make sure their neighbors have access to the goods and supplies that they rely on.”

“I applaud Lidl's decision to raise starting wages for employees on Long Island to $16.50 an hour,” said New York State Sen. Kevin Thomas. “Long Island is an expensive place to live and the commitment shown by Lidl to provide strong wages combined with low-cost, high-quality grocery is of great benefit to both employees and consumers.”

“It is crucial that employers pay good starting wages, especially during these hard economic times,” said New York State Sen. John Brooks. “I commend Lidl for raising starting wage to $16.50 as they continue to expand their services on Long Island."

Both Thomas and Brooks were reportedly participants in a demonstration held in summer 2019 at a Best Market store in East Meadow, N.Y., calling for higher wages and benefits. Lidl announced the initial wage raise less than a month later.