Discounters are known for their everyday low-price model. Yes, they do offer weekly promotions. But their permanent range and especially their private label has always been known for the ‘best product for the best price’.
In France, Lidl seems to be moving away from this motto. It has introduced a new range of ‘mini-prix’ products in its stores. The range includes everyday basics in simple packaging for the lowest price, approximately 25% lower than its regular private label. The range is being introduced gradually and the retailers’ objective would be to eventually have some 80 products.
Competition for price leadership seems to be the driver of this development. Lidl and E. Leclerc, market leader in France, have constantly been claiming to be the cheapest on the market. In today’s inflationary environment, Leclerc gained new market share with its low-cost Eco+ range and, in its own words, has dethroned Lidl from being the number one in price positioning on the French podium. Lidl’s introduction of the ‘mini price’ line seems to be a direct response to that.