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Lidl and Aldi Lead German Discounters’ Price War with Record Cuts

Retailers are lowering costs on essential goods to draw budget-sensitive consumers at a time of sustained food-price inflation

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Overview

  • On May 24, Lidl implemented its biggest simultaneous price cut in company history, reducing costs on more than 500 products by up to 35 percent.
  • Aldi responded with permanent reductions on approximately 1,000 items and plans to cut prices on hundreds more in the coming weeks.
  • Rewe and Edeka have announced that they will follow suit to protect their market positions.
  • Germany’s discount retailers generated about €77 billion in sales in 2024 as food prices rose 36.5 percent since 2020.
  • Analysts say the aggressive discounts are designed to win over budget-conscious shoppers and could shift market leadership among discounters.