Lidl, Aldi, Edeka, Penny: discounters are fueling price wars

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economy Aldi against Lidl

These posters show the new discounter price war

| Reading time: 3 minutes

The discounters in Germany are fighting fiercely for price sovereignty The discounters in Germany are fighting fiercely for price sovereignty

The discounters in Germany are fighting fiercely for price sovereignty

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Aldi and Lidl discuss advertising posters about who is cheaper. At the center of the conflict: the discount strategy of branded consumer goods. In stores, customers can already feel the consequences.

WIs it cheaper: Aldi or Lidl? In recent months, a bitter conflict has re-emerged between the rivals of the bow. The fight is not only with special offers, but also with strong slogans. At the same time, the other great grocers take away the fat from time to time.

Aggressive has recently appeared above all Lidl, The discount store in Neckarsulm had set up posters in several cities where it had attacked the competition itself. "It's worth it. Other ALDI's are more expensive", "More expensive would be EDEKAdent" or "As cheap as the PENNY rotates twice", consumers could read.

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But obviously the competitors did not let the shot land on them. Aldi celebrated in exchange only a few days later in a digital campaign like "the inventor of low cost". And belonging to Edeka Empire's Netto discount store made in a newspaper ad on the allegedly too small selection of Lidl fun – with the motto "Do you want a little more Lidl selection? Then go to Netto! ".

The witty sayings, however, cannot hide the fact that there is a lot for everyone involved. The trigger of the current dispute sees the commercial expert Matthias Queck of Retailytics, the group of analysts of "Lebensmittel Zeitung", in Aldi's decision to include more and more branded products in the offer.

Aldi's branding strategy

This has consequences: "Aldi would obviously like to gain the pricing power in branded products, the level at which all others must be price-oriented", says the industry expert. So far, Aldi has played this role only in private labels, but in Lidl and other brand products they set the tone.

"Since Aldi offers more and more branded products, a lot has started to move here." Because Aldi is under pressure. For a long time, the company was the undisputed number one in the discounter sector. But for years Lidl reduces the storage gap and is now hot on its tail.

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Lidl does not even think of giving Aldi the command of branded products. On the contrary: "Our goal is to emphasize our price leadership and our position in the food retail sector as the first discount with branded products", emphasizes the company.

This further fueled the existing rivalry. Bot Aldi talks about the 1.25 liter bottle of Coca-Cola from its permanent range in the special offer for 79 instead of 99 cents, so they sold Lidl for 77 cents and Aldi had to follow the example. From a total purchase value of 40 euros, Aldi Süd offered customers a 20% discount on all baked goods, so Lidl offered a 25% discount and requested only the purchase of at least five sandwiches, croissants or other baked goods.

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Aldi

"National emergency"

For their campaigns, low-cost vendors have plunged deep into their pockets. Lidl gave after the announcement of "Food journal"And the market researcher Nielsen in the first half of the year has almost 185 million euros for advertising, at least 13% more than in the same period last year. Aldi has increased advertising costs accordingly by more than 50 percent to just under 92 million euros.

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But to what extent does the consumer really benefit from the rivalry of the discounters? The evaluation of mercury is rather reassuring. "To talk about the biggest price war of all time would certainly be exaggerated. The battle over discounts focuses on some branded products," says the expert in the sector. Most of the range of discount stores, however, were still private labels, and there is no fundamental downward trend, quite the opposite. "In this regard, it is questionable whether, on balance, consumers really benefit from it. Save a little on promotional items, but you could pay for the total purchase," says Queck.

(tagToTranslate) Lidl (t) Aldi (t) Food (t) Discounter (t) Aldi South (t) Lidl (t) Conflict (t) Technique (t) Telecom

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