Aldi, the discount supermarket leader, has stood for the lowest in prices in everyday foods for years. However this could all change as supermarket chain Real have come up with a new cheaper budget range in order to compete with Aldi, Lidl and co. Clients, however, should be prepared for lower quality.
"It is quite possible that Real will trigger a price war in Germany like we have not seen for many years." said trade expert Matthias Queck of consultancy Planet Retail. Price breakers are presently very visible in prominent locations in more than 300 Real supermarkets in Germany and includes some 20 articles, but this range will increase further. These products are in bright yellow packaging and in place of a brand name just a product description.
"The discounters have improved the quality of their products so there is more room in the budget area," said Didier Fleury, CEO of Real, in the magazine 'Lebensmittel Zeitung.' Real will now fill this gap in the market. Frugality is therefore an option. The brandless multi-vitamin juice is, for example, at Real just 79 cents per 1.5 litre pack. The fruit content is also only 12%. Compare this to Aldi Süd, it costs 95 cents for a litre of multi-vitamin juice, however the client would get 100% fruit juice.
Trade Expert Queck thinks there is a market for super cheap products. "There are households in Germany were even shopping at a discounter is a financial challenge. There are people who need to shop even cheaper," he said. Real need to watch out thought that Aldi, Kaufland and co do not feel pushed out. "If this is successful, Real can expect a quick retaliation," expects Queck.