Discounter battle: Aldi and Lidl face a nasty surprise on January 2nd

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Aldi and Lidl are preparing for a price war. Image: www.imago-images.de / Chris Emil Janßen

Discounter war: Aldi and Lidl face a nasty surprise on January 2nd

January 2nd is the key date: At the beginning of the new year, the VAT rates will be raised again to the old level. The day could lead to the start of a price war between the discounters Aldi and Lidl. According to “Lebensmittelzeitung”, the two supermarket chains are already considering strategies to gain the upper hand.

Because neither of the two discounters knows what the other is up to. Will consumer prices rise again after the temporary tax cut? Or do they stay the same?

Aldi and Lidl have to expect that the competitor will advance on January 2nd and cancel the price increase

Aldi and Lidl are threatened with a nasty surprise. Everyone plans to actually raise prices on January 2nd, according to the report. Just: What happens if the respective competitor rushes ahead? Then it seems unthinkable that the other discounter does not react. All plans for the price increases would then be thrown overboard for the time being. In the competitive food market, none of the giants can afford to be more expensive than the other. And Aldi and Lidl both make the absolute claim to be the cheapest provider.

But the game about the price increase does not only affect Aldi and Lidl. The entire market orients itself towards the two trading giants – should either of the two decide not to raise prices, the rest will follow. This could lead to severe entry losses right at the beginning of the year.

The head of the drugstore chain dm, Carsten Werner, told the food newspaper: “We are guided by the needs of our customers and therefore of course look at how the competition will proceed“, and thus announced a possible price adjustment to the discounters.

Edeka and Rewe are also prepared for the price changeover

According to its own information, Edeka is planning a gradual adjustment of prices to the VAT changeover. The employees are also important for the market leader – they shouldn’t have to endure an additional burden after the exhausting Christmas business. The price change should be accompanied by advertising.

Rewe should have an easier time making the switch, because the chain has mostly offered special discounts instead of applying the VAT reduction directly to all prices. However, it could take a few weeks for both supermarkets to return to their old level.

It will take some time to see how prices will eventually level off. None of the big supermarket chains can afford to offer discounts all the time. “Marketing gags” at the beginning of the changeover are to be expected, the “Lebensmittelzeitung” quotes the manager of a full-range retailer not named.

The price increase will also incur costs

The discounter chains Lidl and Aldi have been fighting a bitter battle for the lowest prices for some time. In July the VAT cut came because of the Corona crisis and both providers lowered their prices. Aldi offered a flat-rate discount of three percent – and according to its own information it spent a three-digit million amount.

Aldi Nord, Netto and Lidl have to exchange around 2000 labels for the price change. Netto is said to have already budgeted a sum in the mid single-digit million range. Aldi Süd and Penny have shown the discount only on the receipt and left all price tags unchanged.

(lfr)

Edeka turns to Aldi and Lidl in an open letter

The main thing is cheap! Or would you rather not? The supermarket chain Edeka now speaks out in the price war of the discounters. In an open letter, she criticizes Lidl and Aldi for their fight for the lowest price. According to Edeka, the reckless pricing policy of the discounters “puts special pressure on the entire value chain with all the known advantages and challenges”. The supermarket chain also criticizes the advertising campaigns by Aldi and Lidl.

Since the lowering …

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