The German chain is increasing the intensity of competition, while its head in Greece emphasizes that in 200 basic products it is up to 10% cheaper than the rest of the market.
With cutting edge private label products, the Lidl Hellas sets the tone for retail competition, which has been focused over the past two years on the private label segment due to the adverse conditions high inflation has created for consumers.
If it is taken into account that this category is expanding month by month, the price competition, which is triggered by the German multinational, creates a “shock wave” of consequences throughout the market.
As stated yesterday, at a special event, the head of Lidl Hellas, Martin Brandenburger in 330 basic products the company has reduced prices up to 37%. While he repeated that in 200 basic products, Lidl is cheaper by up to 10% than the rest of the market. It goes without saying that these are private label products.
What this means in practice is that, firstly, the pressure it puts on the other big big chains in that category – in one way or another – forces them in some cases to lower the prices of their own private label products and in others to align with it , since price difference between a branded product and the similar private label cannot exceed a certain limit of 30% to 40%. Price cuts on private label products are also pushing prices on branded products.
Of the chain’s 4,000 shelf-life products, 2,800 are private label and 1,200 are branded, Mr. Brandenburger said. Regarding its position in the market, it is pointed out that according to authoritative sources it is very close to the AB Vassilopoulos. The second and third places are only slightly distant from each other – the first one is unquestionably held by Sclavenitis group.
Also, the head of the German company also stated that in the three years from 2024 to 2026 the value of its investments will reach 120 million euros, while from 1999 to 2023 it has invested 1.4 billion euros. Its network consists of 230 stores, which are supported by four logistic centers. It is also pointed out that, as he said, the average payment time of its suppliers is 41 days, while the market average is 117 days. He added that 80% of Lidl Hellas’ sales are made from private label products.
Mr. Brandenburger also mentioned that as of December 1, Mr minimum wage of the company’s 6,700 employees will amount to 1,000 euros -most of them are part-time in stores and full-time in logistic centers. And it cooperates with 450 Greek suppliers, not only in the Greek market, since through Lidl they export to 31 countries with a total value of 460 million euros.