Spain: Lidl and Aldi resist inflation and are the only ones that do not raise their prices
Discount Retail Chains Lidl and Aldi are the only large supermarket chains that manage to contain inflation in packaged foods, with prices that remain stable or even fall compared to the previous year. According to Worldpanel data, inflation in this category stands at 1.6% in the first nine months of the year, although the differences between distributors are significant. Lidl and Aldi lowered them by 0.6% and 0.3%, respectively, reflecting an evolution below the sector average. In the rest of the chains analysed, prices are upwards, although with different intensity.
The highest increase corresponds to Alcampo, with a rate of 3.1%, practically double the market average. Carrefour recorded a rise of 1.9%, also above the average, while Consum raised them by 1.4%, and Eroski limited the increase to 1.3% and Dia to 0.9%. It is an evolution that highlights the different commercial strategies of distributors in a context in which price control continues to be a key factor in attracting and retaining consumers.
The behavior of prices also varies depending on the type of product. The manufacturer's brand registers an inflation of 2.6%, compared to 0.3% for the private label brand. The difference of more than two percentage points shows the greater capacity of supermarkets' own brands to contain the increases, in a scenario in which chains use their own brands as a tool to offer cheaper alternatives to households.
The pressure on consumers' budgets and the search for savings are, in fact, transforming shopping habits in Spain, which has caused private label to continue to gain weight in the shopping basket, reaching almost 48% of the share.
It is a growth that also reinforces the prominence of the chains that have built their commercial model around a short assortment, with a high presence of their own brands, forcing the sector as a whole to adjust its strategy to compete on price.
Lidl, Dia and Consum are also among the brands that have gained the most ground in market share during the period analysed. According to the data collected in the study, the three chains have taken advantage of a scenario in which consumers compare prices more, distribute their purchases among different establishments and give greater importance to promotions. This fragmentation of the basket is particularly beneficial for operators who manage to attract customers with offers and a competitive price proposition, even when they are not their usual supermarket.
Despite the efforts being made by both industry and distribution, the escalation, in any case, of prices has placed Spain as the country in Europe where food prices have become more expensive with an increase in August of 2.3%, only behind Cyprus, which has posted a 3.8% increase. according to the latest available year-on-year data from Eurostat. The problem, moreover, is that the increase in prices is increasing and, in September, according to the data made public by the INE last Thursday, inflation of food and non-alcoholic beverages has already risen to 2.7% compared to the same month last year.
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