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Inflation winners: How Aldi, Lidl and Netto are benefiting from spiraling prices

2022-05-18T07:14:39.122Z


Inflation winners: How Aldi, Lidl and Netto are benefiting from spiraling prices Created: 05/18/2022Updated: 05/18/2022 09:01 By: Lisa Mayerhofer After the Corona lull, the market share of discounters such as Aldi, Lidl and Co. is increasing again. (Iconic image) © Manuel Geisser/Imago After the Corona lull, the market share of discounters such as Aldi, Lidl and Co. is increasing again. You be


Inflation winners: How Aldi, Lidl and Netto are benefiting from spiraling prices

Created: 05/18/2022Updated: 05/18/2022 09:01

By: Lisa Mayerhofer

After the Corona lull, the market share of discounters such as Aldi, Lidl and Co. is increasing again.

(Iconic image) © Manuel Geisser/Imago

After the Corona lull, the market share of discounters such as Aldi, Lidl and Co. is increasing again.

You benefit from inflation.

Nuremberg – Shopping at discounters more often, avoiding expensive branded items and paying more attention to special offers: the Ukraine war and the rapidly rising prices for countless products have changed the shopping behavior of many people in Germany within a few weeks.

This is shown by current surveys and data from market researchers.

They also show that discounters like Aldi, Lidl and Co. are becoming more popular again.

According to one expert, they benefit greatly from inflation and price increases.

Expert on Aldi, Lidl and Co.: "Now the hour has come for discounters"

"Households react very quickly when the general conditions change significantly," said retail expert Robert Kecskes from the market research company GfK of the German Press Agency.

"That was the case with the pandemic, and it's the same now with the Ukraine war and the high inflation rate." People were unsettled, many felt that their disposable income was shrinking and that had a significant impact on their shopping behavior.

A savings measure for many Germans is to shop at discounters.

“The supermarkets primarily benefited from the Corona crisis because people wanted to do something good for themselves during the pandemic.

This pampering phase is now over.

Now it's time for the discounters again," Martin Fassnacht from the WHU business school in Düsseldorf is convinced.

In fact, according to figures from GfK in March, numerous consumers turned their backs on the more expensive places to shop, such as specialist shops and supermarkets.

They prefer to do their shopping at Aldi, Lidl and Co. According to GfK, the discounters' market share is growing again after a long time.

Inflation: Pressure on supermarkets increases while discounters benefit

But the battles over the lowest price, which the discounters have waged in favor of consumers in recent years, are now likely to be over.

Chehab Wahby, consumer expert and partner of the EY-Parthenon consultancy, predicts

further price increases in the

Handelsblatt .

"The discount is the impetus for prices in the market," he said.

Wahby assumes that the discounters will continue to raise prices - in the private label area and for branded articles: "The price movement will have a broad effect.

Because the supermarkets will then follow suit," he told the newspaper.

That also means enormous pressure for supermarkets like Edeka and Rewe.

Retailers with a full range would have a lot to lose, while discounters like Aldi would enjoy enormous basic trust among consumers, says consumer goods expert Whaby in the

Handelsblatt

.

In supermarkets, customers would resent price increases more quickly than in discounters.

Trade expert Kecskes sees it similarly: "It is now a Herculean task for the supermarkets to keep their customers," he told the newspaper.

He expects that Edeka and Rewe will try to distract customers from the inevitable price increases with discount campaigns and strong advertising of their own brands.

(lma/dpa)

Source: merkur

All news articles on 2022-05-18

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