By Jason Mathurin
– Published on 05 Mar 2023 at 11:00
Lidl is a reference when it comes to low-cost products. However, following inflation, the brand is withdrawing some of its flagship items.
The Lidl brand experienced a great boom in the 90s. Indeed, the brand has largely established itself as the high mass of discount in France. Just take a look at the number of outlets open in France. No less than 1580 stores in the territory. To stand out from its rivals, it sometimes uses unfair competition. Although that’s not enough to stop him in the eyes of justice. Indeed, Intermarché had failed in this sense in his legal fight in 2021. Note that the discounter plays on all fronts. From food to small household appliances, including cosmetics and ready-to-wear. Households with the lowest incomes therefore do not hesitate to consume Lidl. Nevertheless, inflation is hitting supermarkets hard, and Germany is no exception. Result of the races, he withdraws key references from its catalog…
Inflation hits discounters hard
Lidl is committed to offering prices that are accessible to everyone. This, despite the decline in purchasing power and inflation. In order not to put the key under the door, he will therefore have to make unpleasant decisions. Like removing items that are popular with customers. The cause: rising prices and pressure from suppliers, who also pay for the pots. “One or two suppliers from Lidl may no longer be on the shelves in the coming weekssaid Michel Biero, the DG purchases and marketing of the sign. When you are asked for a 15 to 20% increase without justification, I cannot accept”. The products concerned would come from French sectors, it seems. Questioned by BFM Business, he deplores a price increase “from 12-15 to 40%« . A big gap that affects customers, once again injured…
Lidl suffers a 25% hike on pasta
Michel Biero has no intention of letting his suppliers exert pressure. The deletion of these references is therefore not only a threat… “When you take 25% increases on pasta, you don’t pass on all of ithe replies. Efforts must be shared, which is not the case today”. Add to this the fact that these suppliers are not able to provide proof of these increases. The lights are red for department stores. Indeed, the distributor System U also indicated that an increase of 10% was to be expected. “I wouldn’t talk about ‘red march’reassures the CEO of Lidl. But D’a complicated semester. I am counting on 10% until the summer before a stabilization and I hope for a decline after”. How long this will last remains to be seen…