Chains such as Biedronka, Lidl and Aldi have already conquered almost half of the Polish supermarket market. Now they will reduce the supply on the shelves to save money. This is a problem for customers and producers – reports “Rzeczpospolita”.
“Discounts in Polish trade are certainly increasing and the price war between the largest chains will only accelerate these trends. This means a gradual reduction in supply on store shelves, which will gradually become noticeable and will be a problem especially for producers.” reports the newspaper.
There will be fewer products on the shelves. The effect of the price war between Lidl and Biedronka
According to “Rz”, the price war between Lidl and Biedronka forced further discounts on suppliers and forced other market sectors to be more active in terms of promotion, although according to many experts it also destabilized the market.
At the same time, it turned out that the discount model dominates and that other players have to adapt to it, which means a greater share of private labels and a gradual reduction of the number of products of the same type on the shelves to the fastest moving products.
– Customers are too confused and really don’t need seven different ketchups to choose from, although of course everything depends on the category. For example, when it comes to mayonnaise, local customs regarding brands are strong. Limiting the supply in stores is a fact and will continue, and this is the worst news for producers, who will have to fight for space on the shelves – explains Agnieszka Górnicka, president of Inquiry, in the daily.
Aldi is changing its strategy. From 600 own brands to 180
The newspaper points out that the Aldi chain recently announced a strategy to simplify and strengthen its private label portfolio to increase its effectiveness. The process is still ongoing: of the 600 own brands, the Aldi chain ultimately wants to have 140 to 180.
– In this way we implement the strategy to achieve the best price-quality ratio – says Alexander Lauer, director of the international purchasing department at the Aldi Nord Group. The chain emphasizes that Polish consumers saved about PLN 164 million on promotions in 2023, which was 28%. discount on the regular price.
According to Andrzej Faliński, chairman of the Economic Dialogue Forum, quoted by “Rz”, discount stores with a limited range can generate high sales. – Other chains are also counting on this, a high turnover is a condition to remain on the shelf, otherwise you will disappear from the store – he adds.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
