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Sunday, December 8, 2024

Stores are cutting the offerings on the shelves. The giants' price war is to blame. “Discounting”

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As she said “Republic“, the so-called discounting. At the end of 2023 shops discount stores already had 43.7 percent. market share, while this year it exceeded the threshold 45 percent Discount stores are characterized by two types of operation – limiting the offer on shelves and focusing on their own brands. – Customers are too confused and they really don't need seven different ketchups to choose from, although of course everything depends on the category. […] Limiting the offer 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 shelf – commented Agnieszka Górnicka, president of Inquiry, for the daily.

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Discount stores are flooding the Polish market. They are guided by two principles

– Private labels are part of our DNA. They give us the opportunity to influence the composition, sourcing of raw materials, packaging design and, most importantly, the price on the shelf for the customer. In this way, we implement the strategy of achieving the best value for money prices – added Alexander Lauer, director of the international purchasing department in the Aldi Nord group. By relying on a limited range of products and brands, discount stores are able to offer customers low prices that generate high sales.

According to Aldi data, in the first half of 2024 Polish consumers saved PLN 114 million on promotions with them. By August, as much as 90.6 percent Aldi receipts contained at least one own-brand product. Interest in these goods increased by 12.2%. year to year.

Cheap stores influence other retail chains. The fight for prices continues

The mentioned discounting is to be the result of the fight for customers between Lidl and Biedronka. The price war also led to changes in other stores that want to fit into the discount model, so they began to develop their promotional activities.

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– In this confrontation, the goal is to stand out with a better, more attractive offer, and market players are very determined – said Piotr Biela from the Blix Group. – In the case of hypermarkets, in turn, the issue is more difficult, it is a struggle to acquire customers in the face of the general deterioration of the economic situation in this segment, as the shares of hypermarkets in the retail market are systematically falling – he added.



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