Price war in Germany. Discount stores are fighting for the client

The discount war moved from the Vistula for the Oder. In Germany, price grass clash between Lidl and Aldi. The aggressive struggle for customer wallets draws more retail market players. Meanwhile, in Great Britain, a representative of discount stores tones emotions.

According to the website dlahandlu.pl, last Friday May Lidl in Germany announced “the largest price reduction in history” – the discounts reached as much as 35 percent. covered 500 products. The advertising campaign even states that Lidl is a few percent cheaper than Aldi. The spot promoting the action, showing the Klents singing Germany in Lidl’s stores, was a direct blow to the image of Aldi as the undisputed price leader. And it moved. In response, Aldi announced discounts on 100 popular food products. Thus, the fight for German wallets started for good.

German discount stores in a state of price war

Other players also responded to Lidl’s offensive and Aldi. Edeka, REWE and Kaufland introduced their own discounts, including similar product groups. In the food industry, there are fears that the growing price pressure can lead to a full -size war, which results in falling margins for both retailers and producers.

Price war on the islands? For now, only in theory

The website, citing the Reuters agency, informs that although a lot of discount voltages are also said in Great Britain, they do not take such a spectacular form as in Germany.

“There is no price war in Great Britain,” assures Giles Hurley, CEO Aldi UK in an interview with Reuters. “There is a lot of talk about it, but nothing happens,” he adds.

It is true that in March the ASDA network, announcing price reductions at the expense of profits, caused speculation and hit Tesco and Sainsbury’s’ quotations, but it has not happened to the open price war. Hurley tons emotions: – This is a apparent price war than real – he emphasizes. At the same time, he points out that food price inflation in May increased to 4.1 percent. – This is the highest level in 15 months – which suggests that real reductions are still not visible.

Aldi UK accelerates – he wants to overtake Asda

Aldi UK is growing dynamically. According to Kantar data, in 12 weeks to May 18 the network recorded 6.7 percent. sales increase and achieved a record market share – 11.1 percent. Currently, it sells more food and drinks than ASDA, which has 12.1 percent. participation. The plans are ambitious: in 2025 Aldi will invest £ 650 million in the opening of 40 new stores and modernization of existing ones. Another 40 branches are to be built in 2026. Long -term goal? 1,500 stores throughout Great Britain.

Biedronka versus Lidl – Polish price war

In Poland, the price war between Biedronka and Lidl was widely heard. It started with aggressive advertising campaigns and direct price comparisons. Both networks regularly competed in promotions, and the conflict even moved to court – Lidl sued Biedronka for billboards suggesting that he is cheaper than a competitor.