Currently something interesting is happening in the German food retail landscape. While discounters like Aldi are perceived by most of the customers as the cheapest option to buy food in Germany, “branded retailers” like Rewe are trying to scratch away this image. The main weapons Rewe and also Lidl (a discounter offering a broad range of branded products) are using are special temporarily price promotions and reductions. Recently the price of Coca Cola was reduced below the price of Aldi.
Now like often in price wars – there might not be too many winners. The brand of Coca Cola is now getting damaged – away from the premium image, the company ist trying to build up. Price increases are getting more difficult – maybe they are even asked by the strong retail chains to compensate for margin losses due to the lower prices. The retail stores might walk into the trap, which already caused the home-and-garden markets “Praktiker” to go bankrupt – motivating the customers only to buy, when special offers are granted. And considering the sugar in this soft drinks, a higher consumption might as well harm the health of the customers.
Recent Comments