Til' Death Do Us Shop: The Never-Ending Price War in Supermarkets
Intense price war at the supermarket persists
Yippee for your wallet! The once impossible dream of affordable grocery shopping is becoming a reality... kind of. It seems like your favorite supermarkets and discount chains have called a truce in the price war, and customers like you can enjoy some savings on their basket. Aldi, Lidl, Kaufland, Rewe, Norma Group (a.k.a. Norma and Penny), and a few others, have dropped permanent price cuts across a range of food, care products, and even pet food items.
But who's winning the race to the bottom?
Aldi has taken the (dis)counting crown once again, slashing prices on an additional 25 items. Wait, there's more! Their competitors have swiftly followed suit, readjusting their prices to Aldi's new prices faster than you can say "whoa." As a Kaufland spokesperson told "Bild" newspaper, "We always swiftly adjust our prices to match the discounters, and this case is no different."
But while this may mean more money in your pockets, some products might get a little pricier. Chocolate with a higher cocoa content is looking at a cost hike as cocoa beans continue to skyrocket in price. Guess this means it's time to start enjoying life's little indulgences a bit more modestly.
So, why the sudden change in pricing strategy? About a month ago, Lidl initiated this price rebellion by lowering prices on over 500 items. Then, Aldi followed suit with its own price reductions on 100 products. Now, in a mega case of copycat competition, the others had to play along or get left in the dust.
But, is this a wise move by the supermarket giants? Some experts argue that these price cuts are merely a temporary tactic to boost sales during the holiday season. Others, however, argue that as the cost of goods increases, these price reductions are the new normal in the grocery business.
Lastly, don't get too excited about these price drops just yet. Although Lidl kicked off this movement, the extent to which it triggered a price war remains debatable. Some reports suggest that despite the price cuts, Lidl's visitor share has slightly decreased, while competitors like Aldi and Edeka have solidified their market positions by swiftly implementing their own price reductions to win over customers.
So, grab your shopping baskets and get ready to feel the burn in your wallet... temporarily, maybe.
References:
[1] PricePlow. (2021, September 30). Lidl Launches Major Price Offensive, Triggering Permanent Price Wars among Aldi, Rewe, and More. PricePlow. https://www.priceplow.com/news/lidl-announces-major-price-offensive-triggering-permanent-price-wars-against-rivals-including-aldi-rewe-norma/
[2] Food Navigator. (2021, October 05). Lidl's price offensive is having an unexpected impact on its own market share. FoodNavigator-USA. https://www.foodnavigator-usa.com/Article/2021/10/05/Lidl-s-price-offensive-is-having-an-unexpected-impact-on-its-own-market-share
- Aldi
- Lidl
- Kaufland
- Rewe
- Norma Group
- Penny
- Edeka
- Price wars
- Grocery
- Food
- Supermarkets
- Competitiveness
- Retail
- The permanent price cuts across food, care products, and pet food items in supermarkets like Aldi, Lidl, Kaufland, Rewe, Norma Group, and others are a result of the ongoing price wars, with each trying to match the lowest prices to win over customers.
- As cocoa prices continue to skyrocket, some products with higher cocoa content may become pricier, posing a challenge for consumers looking to maintain their lifestyle and finances, especially during the holiday season.
