The head of Lidl Germany has dampened hopes for a rapid comprehensive price turnaround. Most recently, Lidl has lowered the prices of over 700 products, said Christian Härtnagel on Wednesday at the headquarters of the German administration in Bad Wimpfen. "But we are also still in negotiations with the industry, where demands for price increases are on the table."
It is not yet the case that one talks exclusively about falling purchase prices, said Härtnagel. "We cannot and do not want to pass on the price increases, some of which we are justified in paying to our customers, on a one-to-one basis." On the other hand, for Lidl, it is also important to react quickly when there is an easing on the commodity markets, he said, referring to the past price reductions on butter, pasta or cheese.
Trade experts also assume that the price level will no longer be so easy to reach before inflation. It is realistic that discounters and supermarkets will increasingly be offered time-limited offers, said Kai Hudetz, managing director of the Institute for Retail Research (IFH) in Cologne.
No more Haribo at Lidl
Currently, Lidl's customers have to do without almost no brand, said Härtnagel. "The exception is Haribo. So far, we have not been able to reach an agreement on this, and negotiations are ongoing. With our own brands, however, we always have a good alternative on offer." Previously, the "Wirtschaftswoche" had reported on the dispute. Again and again there are such disputes between dealers and manufacturers. Most recently, for example, it became known that Edeka is no longer supplied by more than a dozen corporations.
The price negotiations are intensive, Härtnagel reported. "We know the development of the commodity markets. We know roughly how much personnel and energy costs are involved in the individual products. And we do everything we can to achieve successful negotiations, so that we can pass on the best possible price to our customers."
"Of course, one or the other demand is appropriate"
Lidl recognizes that manufacturers have cost increases in energy or raw materials. "Of course, one or two demands are appropriate. We are negotiating intensively to keep price increases within limits – and we are negotiating a little longer if we believe they are unreasonable."
In times of inflation, discounters have been able to increase their market shares, and this also applies to Lidl, said Härtnagel. "The current situation generally leads to higher sales and increasing market shares, but at the same time we see challenges on other sides of the company."
Lidl celebrates its 50th anniversary. The company from the Schwarz Group, to which Kaufland also belongs, was the largest discounter in the world with sales of around 100 billion euros in 2021. Lidl operates around 31,12 stores in 000 countries. According to Härtnagel, 100,000 people will soon be working at Lidl in Germany. In Germany, the company generated sales of 2021.24 billion euros in 3. Lidl does not provide any information on the profit.