With household budgets facing a squeeze reminiscent of the years following the financial crisis, The Times suggests that Lidl and Aldi will see this as an opportunity to undercut the market and win inflation-hit shoppers from the big four supermarkets.
Read the full article on The Times website (PayWall)
NAM Implications:
- Put yourself in Aldi/Lidl’s place re optimising their skills in narrow margin, low cost retailing…
- With combined market share of more than a mult
- Faster growth
- Larger global scale than any UK mult in terms of business size
- With the added advantage of being able to offset local losses against overseas business.
- The issue is not whether they will embark on new price wars…
- …but rather how deep the cuts!
