From next week, Lidl will extend its discount campaign to create a huge savings network for shoppers struggling with high food prices.
Arlington, Washington-based Lidl US said it plans to cut prices on more than 100 items in more than 170 of its stores starting Sept. 28. The price drops will continue throughout the fall and will be on over 100 items daily. throughout the season.
According to Lidl, a sample of discounted items range in price from $1.29 to $6.75 and represent savings of 20 cents to $1.04 on the dollar. Price reductions range from 10% to 23%, with most being around 11%.
25-item sample products (See table to the left of Lidl USA) includes pizza, lobster cakes, dessert bars, whole bean coffee, shrimp risotto, salad dressings, cold-pressed juice, organic bread, tea selections, vegetable stir-fries, cookie cups, puff pastry, Italian antipasti, Asian noodles and wheat. cookies.
The new promotion marks the expansion of the price reduction program, which will cover more than 100 items in all stores in June. In this effort, discounts range from 10% to 13% on a sample of 20 participating products.
Lidl noted that higher inflation has pushed up food and grocery prices in general, but mainly for staples such as meat, grains, milk, frozen prepared foods and household products.
According to the latest Consumer Price Index, the CPI for household food rose 0.7% in August, the first increase below 1% since April and below 1.3% in July. However, the August household food index rose 13.5% year over year, up from 13.1% in July and the largest 12-month increase since March 1979, the US Bureau of Labor Statistics said. All six major food group grocery store indexes rose in August on a year-over-year and month-over-month basis.
“We understand that inflation and rising food prices affect many families, and we hope to provide even more discounts this fall through our price reduction campaign,” said Stefan Schwartz, Lidl’s US chief purchasing officer and executive vice president. . “Every day we are committed to offering all our customers the best value in our stores, and we will continue to invest in additional ways for customers to save money, which we know is most important.”
Lidl’s US footprint spans nine states including Virginia, Delaware, Pennsylvania, Maryland, New Jersey, New York, North Carolina, South Carolina and Georgia, and most recently the District of Columbia.
The limited-edition grocer ranked sixth in the inflation-adjusted list of top grocers, behind Market Basket, Aldi, WinCo Foods, Grocery Outlet and Save A Lot.
In a dunnhumby analysis published earlier this week, Lidl was grouped into the Base Price Leader category, which included chains such as Aldi, Market Basket, Grocery Outlet, Save A Lot and WinCo – all high on the ranking list. 73% of grocery shoppers surveyed agreed that Base Price Leaders had lower prices without discounts.
“Typically, retailers that rely more on core price and less on other levers tend to outperform,” consumer data specialist Dunnhumby explained in his report. “For example, base price market leaders such as Aldi, Lidl and Market Basket have the highest momentum and best five-year sales CAGR in 2022. [compound annual growth rate].”
Another grocery group, Lead Conductors, has an advantage over Basic Price Leaders in terms of using and personalizing customer data to serve relevant ads and drive loyalty, Dunnhumby said. However, the gap is not significant for base price leaders, the study found. 65 percent of shoppers surveyed agreed that Base Price Leaders offer many items on sale, 66 percent agreed that the retail group’s discounts are large enough, 64 percent said that these chains create lower prices, and 71 percent said that their own brands save them money. money.
“While the leading conductors also enjoy massive promotions, the Base Price Leaders are not far behind,” Dunnumby noted in his report. “The takeaway from these data points on mass promotions is that Baseline Price Leaders are actually relying on mass promotions to drive price acceptance and not just relying on everyday low prices.”