Aldi and Lidl Triumph in 2013
Competition Rises as discount Grocery Stores such as Aldi and Lidl hold Consumer Retention
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This year has been a triumphant year for Aldi and Lidl in the 9 million grocery trade. Their discount prices have created major price wars, increasing competition in the trade.
In February 2013 Tesco was at a high, reporting sales in Ireland of €3.15 billion (including non-grocery, such as petrol). However in the third quarter sales slipped by 8.1%, and a price war began. Tesco introduced its ‘price promise’, to match or beat prices from Aldi and Lidl, or refund the difference of up to €10 with a customer’s next Tesco shop.
Over 2013 Aldi’s discount prices attracted many consumers, increasing its market share by 20% and due to this the store now holds fourth spot, with 7.4% of the market.
The grocer trade is to see major price wars through 2014, as many key players aim to achieve greater market share.