Lidl, Aldi and Co.: Price increases - that's why discounters are winners in the crisis

Created: 05/05/2022Updated: 05/05/2022 21:39

By: Dominik Jahn

Despite price increases, discounters are the long-term winners in the crisis.

© Fabian Sommer/dpa

An economic expert explains why discounters are getting through the price crisis better and are benefiting from it in the long term.

Just a few days ago,

reported on further price increases at food retailers such as Lidl, Kaufland and Aldi.

A manufacturer continues to increase its prices.

For customers, shopping becomes expensive fun.

Experts see discounters in particular as winners in the crisis.

You will probably also benefit in the long term from the current high price level.

The discounter giant Aldi in particular had spoken very quickly and very offensively about the impending price increases due to the Ukraine war.

At Lidl from the Schwarz Group based in Neckarsulm, people were initially a little more reserved.

Economists are not expecting the markets to ease up anytime soon.

Price increases: Discounters such as Lidl or Aldi set the pace

Chehab Wahby, consumer expert and partner of the EY-Parthenon consultancy, told the Handelsblatt that an

can currently be observed.

Wahby: "The lower income groups will be hit particularly hard."

Companies such as Aldi or Lidl are decisive in the current price situation in the food trade: "The discount is the impetus for prices in the market".

And the expert gives a little edifying outlook: "The discounters will continuously raise prices, in the private label area and for branded articles".

It is then also very clear: the supermarkets are following suit.

Lidl/Aldi and Co: Own brands as a cheap alternative in the crisis

At the market research institute GfK, the current developments have also already been clearly documented in figures.

People are unsettled, explains Robert Kecskes, industry expert at GfK in the

report: "There is huge uncertainty among the population, which is surprisingly reflected in purchasing behavior."

GfK (Growth from Knowledge)

GfK is the largest German market research institute.

It is one of the five largest companies in this industry worldwide.

GfK is based in Nuremberg.

According to its own statements, the institute advises leading brands worldwide and sets new industry standards.

GfK has been providing data and analytics, essential insights into markets and consumer behavior, for over 85 years.

People have less and less money in their pockets for their purchases.

You are looking for cheap alternatives.

At this point, the discounters like Lidl or Aldi become the winners in the crisis, despite rising prices.

It says: "The share of retail brands in total sales rose again in the first quarter of 2022 for the first time in years and is now 34.6 percent".

Discounters are gaining market share: Lidl, Aldi and Co. are doing well with the price increases

According to the post, it's becoming extremely evident in breakfast products.

Here, the own brands have increased their share by 3.6 percent.

For staple foods, the value went up by 2.9 percentage points.

Grocery giants such as Aldi and Lidl have now been able to increase their market share compared to the supermarkets.

Lidl did not want to comment on whether the figures mentioned also reflect the experiences of the companies.

When asked by

, the discounter stated that they

.

GfK underscores the development with numbers: In March, the discounters only lost

.

Advantage of discounters: Customers have a lot of trust in Aldi, Lidl and Co.

But why are the discounters almost unimpressed by the massive price increases?

According to Chehab Wahby, they enjoy enormous trust among customers.

Increasing prices are then accepted.

Experts from the economy have also already observed the enormous resilience of the discounters in other difficult situations.

Lidl, Aldi and Co. usually always benefit in the long term.

Wahby: "In every economic crisis, the share of discounters has increased by three to four percent - and it has not decreased significantly since then." Supermarkets, on the other hand, always have to fight hard for their customers in such times.

Compared to the discounters: Organic is the loser due to the price increases

The Handelsblatt says:

. "

According to GfK figures, sales at brand manufacturers in the organic segment fell by 11.4 percent in the first quarter.

But here, too, the organic private labels of the trade were able to gain something.