The Cutthroat Competition Among Aldi, Lidl, and Other Discount Stores in Germany
Competing retailers vying for dominance in the discount sector - Competitive Discounts Battle for Dominance in Market
Hold onto your shopping carts! Germany's discount stores are engaged in a fierce battle for dominance, and it's the consumers who are reaping the benefits. With Aldi and Lidl at the forefront, these budget-friendly retail titans are ruthlessly undercutting prices to win over price-conscious shoppers.
Last year, the German market research institute YouGov reported that discount stores raked in a whopping 77 billion euros, a staggering 30% increase over the past five years. That's not all – other discount giants like Penny, Netto, and Norma also saw impressive growth. But, it's Aldi and Lidl that have been locking horns in a deadly dance of domination.
Sales in the food retail sector surged by a whopping 26.6% between 2019 and 2024, hitting an astounding 203 billion euros. Supermarkets like Edeka and Rewe also witnessed notable growth during this period, though their rate of expansion was a tad slower.
In a market where self-service stores like Kaufland, Marktkauf, and Globus, as well as specialized stores, saw their market share dwindle, discount stores skyrocketed to an impressive 38% market share. Meanwhile, full-range supermarkets accounted for a near 29% share, reflecting the unrelenting competition between these retail titans.
The battle for supremacy is fiercer than ever, with both Aldi and Lidl slinging cheap prices in a ferocious price war. Lidl dropped hundreds of item prices by up to 35% in some regions, stunning consumers with their raid on wallet-friendly shopping. Aldi, resilient as ever, followed suit, announcing permanent price drops on over a thousand items across several product categories.
Robert Kecskes, expert at YouGov, confirmed this not only intensifies competition between distribution channels but also sharpens the battle for market share among discount stores. The price wars are a calculated strategy to lure cost-conscious consumers into their respective stores, though these price reductions don't apply to the entire product range.
For instance, lower prices on dairy products, meat and sausage items, frozen food, sweets, and cleaning agents are clever ploys to attract new customers who, ideally, will also purchase items with a higher profit margin.
Lidl is gunning for the crown, determined to dethrone Aldi. They recently declared themselves cheaper than Aldi, triggering a flurry of excitement among price-conscious shoppers. Lidl's reputation as a sustainability champion, bolstered by their spot atop Germany's sustainability rankings[5], further cements their appeal.
As for Aldi, they have an unwavering tradition of maintaining price leadership, a brand identity deeply ingrained in their shopper base.
This battle for price leadership has transformed the German retail landscape, driving down prices, nudging traditional stores to prioritize sustainability, and forcing them to adapt to evolving consumer preferences[2].
Overall, the tug-of-war between Aldi and Lidl has left its indelible mark on the German food retail market, revolutionizing the industry with fierce price competition, sustainability initiatives, and prompting traditional retailers to innovate and stay competitive.
- Aldi
- Lidl
- Discount Stores
- Competition
- Market Leadership
- Germany
- Robert Kecskes
- YouGov
- Groceries
- Heilbronn
- Nuremberg
- German Press Agency
- Netto
- Norma
- EDEKA
- Rewe
- Coronavirus
- Ukraine
- Kaufland
- Marktkauf
Enrichment Data:
Overall:
In the German discount store sector, both Aldi and Lidl have been key players, frequently alternating in market leadership based on different metrics. As of 2025, Lidl has made significant moves, announcing substantial price cuts and claiming to be cheaper than Aldi[4]. However, Aldi has traditionally been strong in maintaining price leadership[4].
Market Leadership
- Aldi: Known for its efficiency and low prices, Aldi has historically been a strong competitor in the German market. It has traditionally positioned itself as a price leader.
- Lidl: Lidl has been gaining ground, particularly with recent price cuts and sustainability initiatives. It recently topped a sustainability ranking in Germany[5].
Impact on the Food Retail Market (2019-2024)
Price Competition: The intense price competition between Aldi and Lidl has driven down prices across the market, benefiting consumers but pressuring other retailers like Edeka and Rewe[4]. This competition has also led to a broader price war, affecting margins and prompting other retailers to respond with their own price cuts[4].
Sustainability: Both Aldi and Lidl have increased their focus on sustainability, with Lidl leading in sustainability rankings. This emphasis has encouraged other retailers to prioritize environmental and social responsibility, shaping industry practices[5].
Market Share: Over the years, Aldi and Lidl have consistently increased their market share in Germany by appealing to price-conscious consumers. Their growth has challenged traditional supermarket chains, forcing them to adapt to changing consumer preferences[2].
- The intense price competition between European Commission (EC) countries' discount stores like Aldi and Lidl, echoing free movement of workers and services, has led to a significant reduction in grocery prices in Germany.
- The ranking of Lidl as the sustainability champion among discount stores could attract more customers and reinforce their market position, bridging the gap between sustainability and budget-friendly shopping in EC countries.
