Thursday , July 7 2022

Aldi crazy bargains – That's the reason for the mega-price crash



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Aldi is changing his strategy in the relentless discounts competition and wants to defend his supremacy. For the customers there are crazy offers.

Essen – The discount price war goes to the next round – and Aldi sets a definite example. The popular supermarket is now losing 42 per cent brand products between May 13 and 18 with Philadelphia cream cheese. Behind the offer is calculus. It fits perfectly with Aldi's new strategy.

Aldi with price slide: That's behind Aldi's new strategy

Aldi's extreme price discount means in numbers that brand cheese is available in all branches of Aldi Nord for only 85 cents. Compared to the original price (RRP) of € 1.49, Aldi reduces the yield from 64 cents, or 42 per cent. The reason for this price fall is the competition with the other discounters, such as Lidl. This is getting harder and so we need very special incentives to persuade the customer to offer himself. Not a free talk industry magazine Food newspaper is already a "bitter dispute about price sovereignty in the discount business". For dairy products it can sometimes come to 50 per cent deductions.

In contrast, in recent years, in a discount competition sometimes it was quite quiet. The grocery trade has "held back relatively little in recent years with price wars, because the traders have had to put a lot of money into the digital transformation and upgrade their stores," says Boris chip planer trade website. Aldi completely changed his pricing strategy.

Aldi in the discount competition at the top: "Everyone else almost slavishly follows"

For the difference, this aggressive strategy is inevitable. "Aldi defends his brand essence: the customer can trust that he won't get a better deal anywhere else," Planner stresses the importance of these proposals for Aldi. In particular, Lidl and Kaufland repeatedly put their proposals to Aldi under pressure and are likely to be the main competitors in the future.

But Matthias Queck of the Retailytics analysts group still sees Aldi in a special position in this competition: "Aldi is still the undisputed food retailer in the price entry sector, defining the limit lowest price with its own brands, and each other is almost slavishly following these guidelines. So, in the future, connoisseurs designers of the industry were expecting a "battle" between these food chains, "this will not be over so fast." Customers should be proud.

However, Aldi's customer had recently been dissatisfied with the discount product. Now it is even studied in the laboratory.

Video: A remarkable result – This is the German's most popular discount shop

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