Up to 25% cheaper

Supermarkets fight for customers with price reductions

Alessandro Wolf, head of Lidl Austria, has recently reduced the price of over a hundred organic products: "Despite cost pressure, we are sacrificing margins and strengthening our sustainable range."

(Bild: Krone KREATIV/Peter Tomschi,Lidl Österreich,)

Following the wave of price increases in recent years, grocery chains are now courting customers with "permanently discounted" items. Lidl recently reduced the price of more than a hundred organic products, but its competitors have also slashed many prices this year.

A tough battle in the food retail sector: since the beginning of the year, discount supermarket chain Lidl Austria has "permanently reduced" the prices of over 550 products, and now over 100 domestic organic products from Lidl's own brand "Ein gutes Stück Heimat" have been reduced by up to 25 percent.

Head Alessandro Wolf emphasizes that Lidl is taking on 100 percent of the price reductions itself and that they are not at the expense of business partners and suppliers: "In this way, we are foregoing margins despite cost pressure and strengthening our sustainable range." His aim is rather to attract more environmentally conscious customers to the stores.

Gouda, Emmental, steak and eggs are now cheaper in organic quality
Some examples of cheaper products in the "Ein gutes Stück Heimat" range: the retail price for AMA Organic Haymilk Gouda and Emmental, 250 grams, has fallen from 3.38 to 2.99 euros, a drop of 11.5 percent. The "AMA Organic Chuck Steak", 300 grams, now costs 19.99 euros instead of 26.99 euros - a difference of 25.9 percent. And the AMA organic eggs, 10 pieces, are now 3.99 euros instead of 4.19 euros, a drop of 4.8 percent.

Hofer reduced the price of over a thousand items by an average of eight percent
Competitors are also offering discounts: Rival Hofer states on request that it reduced the prices of over 650 products last year. In the first half of 2024, "we were able to pass on an even greater price advantage to our customers: With an average price reduction of over eight percent on more than a thousand items, for example on barbecue products, drugstore items and fresh meat and sausage products." According to Hofer, they want to continue to examine which product groups are eligible for further price reductions.

Spar, on the other hand, has the following to say about permanently cheaper products: "Unfortunately, we cannot disclose an exact number. Such a statement is linked to a customer promise that this number will also be available at the respective location. However, the number of discounted items varies depending on the size of the store and the associated product range."

Marcel Haraszti, head of Rewe (Billa, Penny, Adeg etc.): "The time of hyperinflation is over."

(Bild: Tomschi Peter)

And Rewe boss Marcel Haraszti (Billa, Penny, Adeg etc.) explains: "The time of hyperinflation is over. We permanently reduced the prices of more than 1100 products last year and have increased our own-brand share in recent years. Our entry-level price brand Clever, among others, has recently performed well and we are continuing to expand its product range this year." There are now around 850 items at discount level at Billa. Haraszti: "At the same time, we also reduced the prices of a number of items in 2024."

Before that, food costs rose by more than 20 percent in two years
Of course, prices had risen considerably before that (see chart): In general, food and beverages increased in price by more than ten percent in 2022 and by a further eleven percent in 2023, according to Statistics Austria. This results in increases of more than 20 percent in two years. The increases were particularly high for bread, vegetables, mineral water and juices.

(Bild: Krone KREATIV/Adobe Stock)

Nevertheless, the situation has recently eased somewhat: As of the end of June 2024, statistics show that fruit, milk, cheese and eggs were actually cheaper compared to the previous year. However, prices are still significantly higher than they were in 2021 - before the wave of inflation began.