Use record: Never before there has been in the German food trade as many promotions as the first half of 2015. This emerges from a study by the Society for Consumer Research (GfK) <. / p>
Almost one-fifth of sales of consumer goods of everyday needs – apart from the fresh food counters – was achieved in the first six months as part of cutbacks actions reported GfK retail expert Wolfgang Adlwarth on Friday. For branded products thus accounted for even 27.8 percent of sales achieved on Promotions – noticeably more than in previous years,
“The issue prices dominated this year’s competition is much stronger than in recent years,” says Adlwarth. Trigger was the price war between the discounters Aldi and Lidl. Aldi list currently getting new brand products in order to benefit from the trend observed in Germany for higher-value consumption.
Lidl feels characterized attacked explains Adlwarth. The company feared for his far superior price image in branded goods and hit back – which in turn Aldi will not let rest: “This is a battle that will take place over rock-bottom prices.”
“The madness must come to an end”
The journal “Lebensmittel Zeitung” spoke of a “veritable earthquake” that would have triggered the brand’s Listings from Aldi. In fact, the battle of the giants affect the entire food trade. To remain competitive, according to GfK also need classic supermarkets and drugstores at least go along to a certain extent – for example through additional promotions. And also the smaller discounters such as Kaufland has no choice but to orient themselves to the market leaders.
The brand manufacturers view the developing situation with concern. The Germany boss of the consumer goods giant Unilever (Langnese, Knorr, Axe), Ulli Gritzuhn demanded recently in an interview: “The madness must come to an end.”
The price wars at the expense of brand manufacturers could not cope with the company in the long run. “We as an industry and trade must find a way how we can stop the destruction of value in the brands”, demanded Gritzuhn.
The sales decreases anyway
Also Andreas Gayk, the head of sales policy and trade relations with the Association of Brand Manufacturer (Brand Association), resents the latest development: “This is value destruction par excellence.” What passing there, is neither necessary nor meaningful: “We would welcome pronounced when the food trade would find ways to distinguish themselves differently on simple price mechanism to compete with rivals.”
Read more about
sales successes have not yet brought the discounters already aggressive cutbacks actions. According to GfK, sales of low-cost carriers in the first half year by 0.7 percent below the previous year’s level. The classic supermarkets shone contrast with a growth of 2.8 percent. Overall, the buying mood of consumers all over the German retail sector helped from January to June, according to the Federal Statistical Office to a real (price-adjusted) increase in sales of 2.5 percent compared to the same period last year.
The fact that the desire for the brand to an early end of price wars in the food business come true, trade expert Adlwarth believes not: “The price spiral will probably continue to turn for a while.”
Here you can download the acquire rights to this article
jQuery (“# W2Ziel”) append (easy folio).
jQuery (“# EasyfolioFeedBox”) append (html).