Aldi and Lidl are becoming increasingly popular for this unexpected reason
Over the past two years, almost all supermarkets have seen their revenue and profits surge. Only LIDL and Aldi lagged slightly behind that trend, but that has changed, research firm IRi discovered. The explanation? It has nothing to do with inflation.
The increase in revenue at Lidl and Aldi does not seem to have much to do with rising prices. The research firm believes that the two discount supermarkets actually benefited less from the huge rush on supermarkets during the coronavirus pandemic than you might expect based on their market share. And that, in turn, is because you cannot always get everything on your shopping list at Lidl and Aldi: the range offered by the two price fighters is genuinely much smaller than that of, for example, Albert Heijn and Jumbo.
Everything is back to normal
Face masks have been scrapped, other measures have been reversed, and the world seems to be returning to something resembling normal. As a result, customers are also returning to Lidl and Aldi, the research firm can see from the figures. ‘Before the coronavirus crisis, Aldi and Lidl had a combined share of 16.2 percent of the supermarket market. During the crisis, that fell to 15.6 percent. The percentage has now partially recovered to 15.9 percent,’ writes the website Radar. The supermarkets have therefore not yet returned to their former level.
Less organic food
The rush on Lidl and Aldi has nothing to do with the price increases that have been the subject of much discussion lately, by the way. They are changing shopping behaviour in supermarkets: more own-brand products, fewer A-brands. And people generally buy less organic food because it is usually considerably more expensive than conventional products. The research firm also expects a significant dip in supermarket revenue in 2024, because from that point onwards supermarkets will no longer be allowed to sell cigarettes and other tobacco products. Perhaps that also partly explains Lidl’s revenue dip, since that supermarket stopped selling cigarettes in 2021, but IRi makes no statement on the matter.
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Source: Radar.nl
