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Germany: Suppliers worry about ‘more expensive’ Aldi

German retailer Aldi recently started selling top brands like Coca Cola. To have enough supply 25,000 of Coca Cola were delivered to outlets. The decision to sell top-segment items was the result of dwindling market shares, according to Wolfgang Adlwarth of market research company GfK. Arch nemesis Lidl has grown considerably supplementing its assortment with top brands.

“Aldi was desperate for new customers,” says discount expert Matthias Queck. “Too many shoppers grew tired of having to visit several supermarket for the desired groceries. Aldi is now updating its supply.”

This sounds like good news to consumers. Companies supplying Aldi, however, are worried. They fear the retailer will engage in a price war with other chains, resulting in a demand for cheaper supply. So far, this fear seems unwarranted. Aldi is not going for broke. In fact, it seems that the retailer is embracing its new image as a top segment outlet and is allowing other discounters to be cheaper. Aldi is thereby signalling that it will remain loyal to its trusted suppliers, according to Queck.


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