Hofer explains the factors influencing retail product pricing

Retail pricing is determined by a complex chain of factors including raw materials, production, packaging, advertising, transport, storage, and sales, as well as specific retailer decisions.

To maintain low regular prices, Hofer focuses on close cooperation with suppliers and local producers to select raw materials and develop recipes based on consumer feedback. The retailer emphasizes quality through its private label products, noting that it limited trans fats in its brands ten years before legal requirements and was the first retailer to remove battery cage eggs from its shelves in 2017.

Additionally, packaging and advertising significantly impact product perception and cost. While established brands often invest heavily in attractive packaging and expensive marketing campaigns—costs that are passed on to the consumer—Hofer utilizes a different approach by avoiding advertising for its own brands of products like chocolate or detergent to reduce costs not directly related to product quality.