The Old Trafford great believes the Reds can form a Premier League title challenge with Jose Mourinho ‘s £75million signing as their spearhead.
And he has warned the striker he will have to deal with the pressure of the intense spotlight being a United player brings.
“Manchester United needed some new blood and the injury to Zlatan Ibrahimovic removed the question as to whether he was replaced,” he told Sky Sports .
“Romelu Lukaku will score goals, there’s no doubt about that.
“He’s still got to work on his first touch but he has already been scoring plenty at West Brom and Everton and will get more chances at Old Trafford.
“What he won’t have experienced is the pressure of being a Manchester United forward. He wouldn’t have felt that before and you can’t get away with the odd mediocre performance.
“There were too many home games last season where we didn’t take our chances but it’s not just down to Lukaku, the rest of the team need to be contributing as well.”
Giggs believes United will face stiff competition from a number of clubs – and labelled Manchester City’s attacking threat as ‘scary’.
“I think Manchester City are the team to beat though,” he added. “I looked at them towards the end of last season and the forward players they’ve got is scary, with Sergio Aguero, Gabriel Jesus, Leroy Sane, Kevin De Bruyne, David Silva and Raheem Sterling.
“What they needed to get right was their defence and it will be interesting to see how Ederson settles in, because you don’t win the Premier League with an average goalkeeper.
“They’ve obviously invested heavily on full-backs but the question is still whether Vincent Kompany can stay fit because his influence and experience are key for them.
“You can’t ignore Chelsea because of their quality, but have they got the squad to balance defending the Premier League and European football? I’m not sure.
“Tottenham have a really exciting squad and a great manager in Mauricio Pochettino, but everybody is asking whether they can continue to match sides without signings.”
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