Lidl is no longer building a store in Cary on N.C. Highway 55 near McCrimmon Parkway. In response, the real estate development group involved with the project is now suing Lidl for backing out of this project and others.
Back in May, Ikea made the same announcement, and now Lidl is following in their footsteps.
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"We received an email that let us know that they are withdrawing their building plans, so we closed the project," Deanna Hawkes, deputy public information officer shared via phone on Tuesday.
The Lidl store was going to be part of a 20-acre development, including apartments and additional retailers. At this time, the apartments are still on track to be built.
Lidl Director of Communications Will Harwood shared in an email, "We have received a positive response from our customers in Raleigh and look forward to opening more stores in the future. Currently, our teams are looking at a number of sites in the area for future growth. However, it is early in that process and we are not addressing each individual one at this time."
For Cary shoppers, the bad news is that in many communities where Lidl has opened a store, the prices at other stores have fallen according to research at the University of North Carolina at Chapel Hill. Not only are shoppers losing out on the great deals on produce and staple items that Lidl offers every week, they are also missing out on possible lower grocery prices from competitors.
Dallas-based Leon Capital Group is now suing Lidl for backing out of planned stores in Cary, Wilmington and Charlotte. Rob Pivnick, general counsel for Leon Capital Group, indicated in a phone call, "Our policy is that we can't comment on pending litigation."
The Complaint, dated June 8, 2018, alleges that "This action arises from Lidl's fraudulent and deceptive conduct and its intentional and wrongful termination of certain agreements, contracts and promises with Leon regarding three real estate development projects in North Carolina located in Cary, Wilmington, and Charlotte."
"Lidl's actions are deeply troubling and have created unanswered questions," said Leon Capital Group spokesman Dee Stewart. "Are there additional private sector or even public sector financial obligations that Lidl has failed to meet in North Carolina? We understand that Lidl has accepted huge sums of taxpayer-funded incentive money. Small businesses and taxpayers deserve a full accounting of what Lidl has done."
In response, Lidl's Will Harwood shares, "Lidl is a company that takes its business responsibilities seriously, and we have exceeded all of our commitments to the State of North Carolina. More broadly, Lidl US has brought new retail options, lower prices, and thousands of jobs to the communities in which we operate along the east coast. Our customers have given us positive feedback, and we look forward to continuing our expansion and opening more stores in North Carolina and across our markets along the east coast. When we have an opportunity to present our case, it will become apparent that the allegations in the complaint are without merit. We look forward to the opportunity to respond and will be vigorously contesting the claims made in the lawsuit."
It will be very interesting to see how this plays out.
In the meantime, Lidl has purchased 6 acres of land in Raleigh that could become their next grocery store location in the Triangle. According to a North Carolina Specialty Warranty Deed dated March 28, Lidl has purchased 6.163 acres near the intersection of Buffaloe and New Hope roads.
There are currently 14 Lidl grocery stores in North Carolina and only time will tell if this location will hold store number fifteen.