In the counterattack Lidl Greece in order to maintain its leading role in its category own brandwhich has recently become more and more popular thanks to inflation. Yesterday the only truly discount chain Supermarket in Greece announced that they are continuing permanent price cuts of up to 35% on more than 160 products, a move that is largely a “relaxation” of the German company in relation to other supermarket chains.

It is noted that since 2022 the wave revaluation led to the transition of a significant part of consumers to products private label, as a result of which their market share will reach the level that it was during the years of deep recession. According to research firm Circana (formerly IRI), the market share of private label products, excluding Lidl, was 16.3% compared to 14.8% in 2021 and reached the level of 2017. In the quarter of 2023, products is 17.7%, while the growth rate jumped to 19%. According to NielsenIQ, the market share of private label products, including Lidl, was 23.8% in 2022, and by February 2023 it had already jumped to 25.2%.

This move by Lidl is also important in terms of timing, as it is far from a coincidence that the company decided to continue – and above all advertise – permanent price cuts about a month before the much-discussed “household basket” expires. The company even claims that according to the research it conducts internally and on a regular basis on over 200 essentials, it is at least 10% cheaper than other supermarkets.

The aim of the German chain is to maintain its leading position in the private label category.

It is recalled that the specified “basket”, based on the delays provided by the Ministry of Development and investments, will be valid until June 30, 2023. also ceases to apply – and not only – which is interpreted by many as the imposition of mark-ups by suppliers and retailers. The latter, however, argue for their part that removing the margin cap measure will not necessarily lead to higher prices, as it will allow companies to be more flexible in their pricing policy and start lowering prices, either permanently or in the context of large promotions.

However, so far no other company from the organized sector food retail not declared permanent price reduction in a wide range of products.

There is, of course, another factor that could prevent suppliers and retailers from imposing significant markups, and that is declining demand. As a reminder, according to the latest available data from the research company Circana (formerly IRI), supermarket sales for the first quarter of 2023 showed a decrease of 1.3% compared to the corresponding period last year.