The old VAT rate will soon apply again.
Many supermarkets will respond.
Experts expect a price battle between Lidl and Aldi.
A
lower VAT rate has been in effect
since July 1, 2020
to support the economy in the ongoing
Corona crisis
.
The old tax rate will come into force again from January 2, 2021 and will force many
supermarket chains
to act.
A
price battle
between the
discounter giants Lidl *
and
Aldi * is
expected.
Kassel - The
VAT cut
introduced on July 1, 2020
should
stimulate the economy again
during the
Corona *
pandemic
.
But now, at the beginning of the new year, the tax rates will be raised again to the old level -
two supermarket chains
are already considering strategies to assert themselves and to outshine the competition.
Aldi and Lidl with their own strategies - price wars expected among discounters
The deadline is
January 2, 2021
: From this date the
normal VAT
rates will apply again
.
For this reason, a
price battle
between the two most popular
discounters in
Germany -
Lidl and Aldi
- is expected, as both want to gain the upper hand in the highly competitive food market.
As reported by the Swiss news portal
Watson
, the two supermarkets are considering
their own methods of taking over the lead,
according to a report by
Lebensmittelzeitung.net
.
Lidl and Aldi: Numerous markets are price-oriented towards the retail giants
Lidl
and
Aldi
each intend to lower their prices
to increase again from January 2nd - but since both markets claim to be the cheapest provider on the market, there could be a big
price war
.
In addition, other
supermarkets are based
on the prices of the two
discounter giants
.
So if one of the two decides not to raise prices in the end, the rest may follow suit and that could lead to significant losing deals.
Lidl |
Aldi |
|---|---|
Foundation: 1973 |
Foundation: 1946 |
Headquarters: Neckarsulm |
Headquarters: Essen |
Number of employees (worldwide): 315,000 |
Number of employees (worldwide): 77,661 (Aldi Nord) in 9 European countries 156,899 (Aldi Süd) in 11 countries worldwide |
Legal form: Stiftung & Co. KG |
Legal form: Two conglomerates of unaffiliated companies |
For example, Carsten Werner, head of the well-known and popular drugstore chain dm, explains that they
are planning
possible
price adjustments to the discounters
.
"We focus on the needs of our customers and therefore naturally look at how the competition will proceed," says Werner.
+
There is a threat of a price war: Due to the VAT change from January 2021, many supermarkets are being forced to adjust their prices to the conventional tax level again.
A price battle could arise, especially between the two discounter giants.
(Symbol image)
© Oliver Berg / dpa
Back to the old VAT rate: The bitter battle between Aldi and Lidl
According to its own information, Edeka * intends to gradually
adjust
its prices to the
conventional VAT rate in
order to protect its employees from possible additional burdens after the exhausting Christmas business.
The supermarket Rewe * also has special plans with regard to the
tax change
: The chain already offered some discounts instead of directly applying the reduction to all prices.
(Alina Schröder)
* hna.de is part of the nationwide Ippen-Digital editorial network.
List of rubric lists: © Oliver Berg / dpa
