The discounter Lidl takes a drastic step and reduces its range. The culprits are slumps in sales, inflation and dwindling purchasing power.
Dortmund – The discounter Lidl is not only popular with its customers because of the cheap groceries. There are always real bargains to be found in the so-called non-food area. This includes all kinds of products, from pajamas to tools to high-priced electronics. But this offer in particular is now being significantly reduced, as RUHR24 reports.
Lidl reduces promotional goods “drastically” because customers are not in the mood to buy
According to Lebensmittel Zeitung (LZ) , those responsible from 30 Lidl countries have placed their non-food orders for 2023 – according to insiders, they should be “drastically lower” than expected. In the coming year, the range of popular grab belt tables at Lidl will be slimmer.
The reason for the redesign of the range is a drop in sales, lower purchasing power of customers and logistics problems. A Lidl manager explains to the LZ that inflation is having a disproportionate effect on discounter customers. An improvement in the buying mood is not foreseeable in the next six to twelve months.
Non-food goods currently make up only ten percent of total sales in all countries. The goal is actually 15 percent. In Germany, the total turnover of the goods should even be less than ten percent.
Discounters Aldi and Lidl are fighting with promotional goods in the non-food sector
According to the newspaper, Lidl is particularly concerned about the purchasing power of customers in view of rising energy prices. Where initially product availability was an issue, now it is customers who need to watch their money. Rewe and Edeka also have to limit an offer in view of the new challenges.
“Everything over 20 euros has dramatic declines,” said a discount manager of the LZ . And Lidl is not alone with this problem. Aldi is also struggling with its non-food goods. According to LZ research, the share of sales has fallen below 20 percent. The discounter wants to respond to current developments because the situation requires more flexibility. It is not known whether Aldi will also significantly reduce the non-food area.