Weak economy: Consumers tend to go to discounters when buying groceries due to inflation

Weak economy
Consumers tend to go to discount stores when buying groceries due to inflation

03.09.2024, 09:41

Food discounters such as Aldi and Lidl have increased their sales by an above-average amount in the past year. In a study, retail experts from the EHI Institute in Cologne attribute this to the weak economy and high inflation. “In the tense economic situation, Germans are relying on the price promise of these retailers,” they explained.

Overall, the food retail sector increased its net sales last year by five percent, from EUR 195 billion in the previous year to EUR 204.5 billion. However, this was quickly attributed solely to the increase in prices, as last year “there was an inflation rate of twelve percent for foodstuffs.”

The discounters were able to increase their sales by an above-average seven percent to 94.6 billion euros. At the supermarkets, growth was significantly lower at 4.3 percent to 86.2 billion euros. “The shift in the proportion of sales between the types of business is due to shopping behavior that reacts to the global crises,” explained Marco Atzberger from EHI.