Walmart CEO Doug McMillon tells The Wall Street Journal that the retailer has been laying the groundwork to compete, working to hone store-brand product selection, lower some prices and get the basics right, like speeding up checkout lines.

Wal-Mart stores need to be as convenient as possible to compete with discount retailers, said Mr. McMillon. To that end, the company is testing a system that lets shoppers scan products with a smartphone while shopping to bypass registers. It is also starting to add express lines at the pharmacy and money-order counters. “We still have some more to address,” he said. “But we are on a path to doing so.”

Read more about Walmart's plans to battle Lidl by clicking here.