Lidl in difficulty due to inflation: the brand announces very bad news

Inflation has been present almost everywhere in France for several weeks. For distributors, and consumers, this is a very difficult time. Among the brands most affected are Lidl. During his speech, its president, Michel Biéro, said he had to take drastic measures. Discover all the details.

Michel Biéro spoke about the situation

If Lidl continues to satisfy consumers with its products of choice, and its prices defying all competition, the sign would face some problems currently. This is at least what its president Michel Biéro confided during his speech.

The latter reported on the current situation in France. Indeed, because of the war in Ukraine, foodstuffs are starting to run out almost everywhere in the country and in Europe. The distributors are therefore in a delicate position and must multiply the operations of seduction to entice consumers.

For its part, the German brand had already had a similar experience during the 2021 Christmas holidays. It faced a shortage of duck caused by avian flu. According to President Michel Biéro, the same thing could happen again during the 2022 Christmas season.

Forced to take drastic measures

For the president of Lidl, the occurrence of the shortage will depend mainly on the behavior of the French. Indeed, the same situation has already occurred before confinement. As the health crisis began to hit the country, consumers immediately began to stock up on supplies for several months. An inexplicable reflex that led to shortages.

So, to prevent the same thing from happening again, Michel Biéro plans to take drastic measures. A rationing per consumer of certain food products will for example be put in place. In this way, the president of the sign hopes to delay the out of stock as long as possible.

A price reduction operation

Inflation has been hitting France for several weeks. And like most brands, Lidl never stops doing what is necessary to keep its customers. Recently, it launched a very beneficial special operation for consumers: 5% reduction on the entire Lidl store.

To benefit from it, the customer must simply pass the coupon activated from the Lidl Plus application when checking out. Note that this reduction is only valid in physical stores, and only from 50 € of purchase. In addition, the customer can only use it once a month. To make the most of the opportunity, the trick is to use the reduction during the big races for the month.

Retail in the face of inflation

Inflation has been present in France for many weeks. This is the reason why foodstuffs are gradually starting to run out. If consumers are forced to tighten their belts, mass distribution is the one that suffers the most. Indeed, brands are forced to implement various techniques, and lower prices to retain customers. In addition to the 5% reduction per month from Lidl, there are also tight prices at Carrefour, the anti-inflation shield at Leclerc, and fuel at 0.85 euros at Casino.

Moreover, even if inflation is in full swing, some distributors somehow manage to get by. This is for example the case of Casino which carried out the good operation of the month of May by gaining 0.3 point of market share. Like her, Leclerc has also progressed. The brand recorded a gain of 0.2 points during the month of May. This is largely due to its good price image, as its owner, who is very present in the media, does not miss an opportunity to praise its “anti-inflation shield”.

As far as Lidl is concerned, well, the brand declined during the month of May. It recorded a loss of 0.1 points. The reason for this decline is that it had to increase its prices considerably. It should be noted that it is above all the brands that have few national brands that are the most affected by inflation.

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