Overview

• Lidl launched its largest-ever price reduction on May 24, cutting prices on over 500 products by up to 35 percent across categories from meat to household supplies.
• Aldi countered within hours by lowering the cost of more than 1,000 items, including sugar to €0.89 per kilogram and 250 g of butter to €1.95.
• Rewe and other supermarket chains have advertised competing discounts but shoppers remain skeptical about how deep and durable the new prices will be.
• Analysts say the aggressive cuts are aimed at regaining market share lost during the 2022–2024 inflationary period by using staple goods as loss leaders.
• The Westphalian-Lippe Agricultural Association, led by Hubertus Beringmeier, cautions that sustained discounting could harm producers and send the wrong signal to consumers.