Discount Retail Chain Aldi, Lidl and many other discounters have increased their prices for many products by more than six percent. The price of cooking oil has even risen by 17 percent and that shouldn't be the end of it. The consumer expert Chehab Wahby expects a continuous increase in discounter prices, reports the daily German newspaper Handelsblatt. "The discount is the driving force behind prices in the market," says Wahby. The lower income groups in particular will suffer from the price increases, the expert continues.
Figures from market research Gfk also show that 85 percent of consumers fear that prices will continue to rise. Before the Ukraine war, the figure was 77 percent. Robert Kecskes, industry expert at GfK, explains: "There is huge uncertainty among the population, which is surprisingly reflected in purchasing behavior." This is also reflected in the consumer climate, which, at minus 26.5 points, has reached its lowest measured value of all time. “Customers' budgets have fallen due to general cost increases,” says Kecskes.
The discounters benefit from the prices
Consumers are now looking for cheaper alternatives, which means that the share of retail brands in total sales has risen again for years in the first months of 2022.
The discounters Aldi, Lidl and many others are benefiting from the rising food prices and expanding their market share. In March, the shops lost only four percent in sales. "In every economic crisis, the share of discounters has increased by three to four percent and it has not decreased significantly since then," explains Wahby.
