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Aldi and Lidl start a price war
Discounters drop prices, pressure competition
Reduction after reduction, Aldi and Lidl are fighting a serious price war at the moment. If one discounter drops the price, the other is quick to follow. The prices of similar products, and several others, are cut. A downwards spiral is created and the competition is put under a lot of pressure.
According to the lebensmittelzeitung.net all kinds of products are caught up in this price war; it doesn’t matter what you are buying, chips, juice, or detergent.
Troubles for supermarkets
While Lidl participates in the aggressive strategy of the competitors, other retailers are concerned. Supermarkets complain about price-cutting and losses reports der Spiegel. The involvement of Lidl in the price war extends the downward momentum. The German discounter is known for their strong price positioning compared to the competition.
Lebensmittelzeitung.net reports loss of value and cites trade experts claims der Spiegel. The competition is consternated and not willing to enter the battle with the discounters. While the supermarkets are in trouble, consumers benefit from the products low prices. And nobody can predict where and when this price war will end.