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Germany: Aldi wants to bring back customers with low prices

Discount Retail Chain Aldi Nord and Süd (both family owned) has not had a good year in Germany. According to German "Lebensmittelzeitung", the discount chain had to accept the greatest loss of market share in the discounter sector in 2020. However, Aldi is now launching an attack with cheap offers and wants to regain the lost market share.

All discounters are preparing for a difficult second half of the year due to the Corona crisis, as people's purchasing power threatens to fall further. In order to lure people with a small budget into their stores, Aldi will therefore again focus more on particularly inexpensive products in the future.

Aldi backs down and relies on a tried and tested strategy

In the recent past, the discounter had advertised with revaluations in the assortment range, which had pushed sales prices up. More and more premium own private label brands, branded items and organic products have recently been found on the shelves of the food giant.

However, instead of focusing too much on the changed consumer behavior of customers, the discounter now wants to rely on the former 'back-to-basics' recipe for success of "best quality at the best price" and respond to the customers' reduced purchasing power.

Soon more particularly cheap products from own private label brands

Overall, the private label range is to be expanded and made even cheaper. At 90 percent, this determines by far the largest part of the discounter range. In particular, products in the so-called entry-level range, i.e. the cheapest groceries in the store, should increasingly come back onto the shelves.

A private label chocolate pudding, for example, will only cost 19 euro cents (US$0.23) in the future, but this is mainly due to the comparatively small portion of 70 grams. But Aldi also wants to add more affordable items to its range in other areas.

The large or family packs are an important factor here, because particularly good prices can be achieved with a lot of content. For example, a pack of Leibniz biscuits will continue to be sold at 99 cents (US$1.19), while the private label can offer extra-large packs of 2 x 220 grams for 1.19 euros (US$1.42).

Aldi wants to better communicate low prices

In addition, Aldi also wants to rely more on its own pricing policy in terms of communication. After the focus was more on the quality of the products recently, the discounter giant wants to lure customers into the shops again, according to "Lebensmittelzeitung", mainly through the "Original Aldi Price".

With a lot of new staff, the price presentation in the market should also be improved so that customers are immediately convinced. In addition, the prices of branded products are now compared directly with those of the private label in the advertising flyers in order to focus even more clearly on the low private label prices.


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