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German retail market sees price convergence between supermarkets and discounters
Retail competition in Germany is seeing a significant convergence in pricing between traditional supermarkets and discounters. Recent analyses indicate that for many core products, such as dairy and staples, prices at retailers like Rewe, Edeka, and Kaufland are nearly identical to those at Aldi and Lidl. This shift is attributed to the high reaction speed of retailers, who often match discount price cuts within one to two days.
Consumers are increasingly utilizing digital tools to manage costs. Retailers are expanding their mobile app offerings, such as the DEICHMANN Schuhe app and EDEKA app, to provide exclusive discounts, loyalty points, and digital shopping lists. Rewe has also focused on its extensive private label portfolio, including brands like ‘ja!’, ‘Rewe Beste Wahl’, and ‘Rewe Bio’, to offer varied price points and quality standards.
However, experts warn of potential hidden costs. These include ‘shrinkflation’—where package sizes decrease while prices remain stable—and discrepancies between shelf prices and final checkout totals. Consumer advocates note that while shelf prices are not legally binding until scanned at the register, shoppers can decline purchases if prices differ. Additionally, psychological marketing tactics and unplanned purchases driven by store layouts continue to influence consumer spending.
Entities
Aldi · Edeka · Kaufland · LIDL · Rewe · Rewe Group · Tamer Batan · The Trade Desk
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] Advertisers can now use purchase data from Rewe's brick-and-mortar stores.
- [● 2 SOURCES] Previously, only data from the Rewe online shop was available for advertising purposes.
- [● 2 SOURCES] The data used for these segments is based on the Rewe Bonus loyalty program.
- [● 2 SOURCES] Rewe and The Trade Desk are expanding their retail media partnership.
- [● 2 SOURCES] The resulting audience segments can be used across various channels, including Connected TV.
- [● 2 SOURCES] The data used for target group segments is based on the Rewe Bonus loyalty program.
- [● 2 SOURCES] Rewe and The Trade Desk are expanding their cooperation in the field of retail media.
- [● 2 SOURCES] Target group segments can be used across various channels, including Connected TV.