With price reductions on butter, pasta or cheese, the discounters recently awakened the hopes of the suffering consumers. But the head of Lidl in Germany is dampening expectations.
The head of Lidl Germany has dampened hopes of a rapid, comprehensive price turnaround. Recently, Lidl has lowered the prices for more than 700 products, said Christian Härtnagel on Wednesday at the German administration headquarters in Bad Wimpfen. “But we are also still in negotiations with the industry, where demands for price increases are on the table.”
It is not yet the case that one only talks about falling purchase prices, said Härtnagel. “We cannot and do not want to pass on the price increases, which we are entitled to pay in some cases, to the customers one-to-one.” On the other hand, for Lidl it is also important to react quickly when there is a relaxation on the commodity markets, he said with a view to the past price reductions on butter, pasta or cheese.
More limited time offers
Trade experts also assume that the price level before inflation will no longer be so easy to reach. It is realistic that the discounters and supermarkets will increasingly offer temporary offers, said Kai Hudetz, the managing director of the Institute for Retail Research (IFH) in Cologne.
Currently, Lidl customers do not have to do without almost any brand, said Härtnagel. “The exception is Haribo. So far we have not come to an agreement here, negotiations are ongoing. But with our own brands we always have a good alternative on offer.” The “Wirtschaftswoche” had previously reported on the dispute. Again and again there are such disputes between dealers and manufacturers. Recently, for example, it became known that Edeka was no longer supplied by more than a dozen companies.
Härtnagel reported that the price negotiations were intense. “We know the development of the raw materials markets. We know approximately how much personnel and energy costs are involved in the individual products. And we do everything we can to achieve successful negotiations so that we can also pass on the best possible price to the customer.”
Lidl recognizes that manufacturers face increases in energy or raw material costs. “Of course, one or the other demand is appropriate. We are negotiating intensively so that the price increases remain within reasonable bounds – and negotiate a little longer if they are inappropriate from our point of view.”
Lidl turns 50 – the largest discounter in the world
In times of inflation, the discounters could have increased their market shares, and that also applies to Lidl, said Härtnagel. “The current situation is generally leading to higher sales and increasing market shares, while at the same time we see challenges on other sides of the company.”
Lidl celebrates its 50th anniversary. The company from the Schwarz Group, to which Kaufland also belongs, was the largest discounter in the world with sales of around 100 billion euros in 2021. Lidl operates around 12,000 branches in 31 countries. According to Härtnagel, 100,000 people will soon be working at Lidl in Germany. In Germany, the company generated sales of 24.3 billion euros in 2021. Lidl does not give any information about the profit.
Source: Stern
