Long story short. The grocery retail sector is opaque so we don’t know what their profits or margins are.
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They operate as a price matched cabal and will no doubt expect the suppliers to fund most of the price cuts they deign to give us.
Even easier now in Aldi with the electronic price tags that can be updated at the flick of a switch for all Aldi sites – I notice an increase in prices there
The suppliers also know, on the confectionary front Aldi, Lidl and any Super valu are pretty good when it comes to sharing the load to keep prices down, Tesco & Dunnes will insist suppliers carry more of the burden to help keep costs down but when you do they dont pass it onto customers, tescos is particularly bad for this as many suppliers in confectionary to them hadn’t raised prices for Ireland and the UK since 2017, tesco prices kept going up then in 2021, 2022 & 2023 when price rises became unavoidable tescos refused and insisted on basically shrinkflation, de-list or suppliers take the full hit again.
I think the head of Lidl is ex Tesco, very sneaky price increases way above inflation, but I could be wrong.
Completely ridiculous quote from minister yesterday: “Inflation this time last year was running at about 10%, it’s down to 5% now, we should be seeing prices coming down. We’re very worried that they haven’t, and we want to engage openly and honestly with the retail sector”.
I do think we’ve convinced ourselves that inflation is a temporary thing, and we’re all waiting for it to be undone. anything but negative inflation means prices are still going up overall. Things like utilities can reduce enough compared to last year that their direct costs reduce, but the likes of lidl deal with thousands of producers and suppliers, all of whom have raised their prices as well, and all of whom would have to be pressured to drop them again. Unwinding this inflation without a massive recession to drive price drops would be next to impossible I’d think.
Put it this way, in terms of overall profit margin, for a retail bakery, deli etc. They are looking for around 50 percent. The actual store overall I don’t know, it’s not as high but they are RAKING in money at the moment.
At some stage in the last two years Aldi and Lidl stopped competing on price.
And the price matching shit they all do became collusion to price match at higher prices.
Own brand butter used be €2.19 in all supermarkets it moved all the way up to €3.39 and now it’s back at €2.99
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Long story short. The grocery retail sector is opaque so we don’t know what their profits or margins are.
——–
They operate as a price matched cabal and will no doubt expect the suppliers to fund most of the price cuts they deign to give us.
Even easier now in Aldi with the electronic price tags that can be updated at the flick of a switch for all Aldi sites – I notice an increase in prices there
The suppliers also know, on the confectionary front Aldi, Lidl and any Super valu are pretty good when it comes to sharing the load to keep prices down, Tesco & Dunnes will insist suppliers carry more of the burden to help keep costs down but when you do they dont pass it onto customers, tescos is particularly bad for this as many suppliers in confectionary to them hadn’t raised prices for Ireland and the UK since 2017, tesco prices kept going up then in 2021, 2022 & 2023 when price rises became unavoidable tescos refused and insisted on basically shrinkflation, de-list or suppliers take the full hit again.
I think the head of Lidl is ex Tesco, very sneaky price increases way above inflation, but I could be wrong.
Completely ridiculous quote from minister yesterday: “Inflation this time last year was running at about 10%, it’s down to 5% now, we should be seeing prices coming down. We’re very worried that they haven’t, and we want to engage openly and honestly with the retail sector”.
I do think we’ve convinced ourselves that inflation is a temporary thing, and we’re all waiting for it to be undone. anything but negative inflation means prices are still going up overall. Things like utilities can reduce enough compared to last year that their direct costs reduce, but the likes of lidl deal with thousands of producers and suppliers, all of whom have raised their prices as well, and all of whom would have to be pressured to drop them again. Unwinding this inflation without a massive recession to drive price drops would be next to impossible I’d think.
Put it this way, in terms of overall profit margin, for a retail bakery, deli etc. They are looking for around 50 percent. The actual store overall I don’t know, it’s not as high but they are RAKING in money at the moment.
At some stage in the last two years Aldi and Lidl stopped competing on price.
And the price matching shit they all do became collusion to price match at higher prices.
Own brand butter used be €2.19 in all supermarkets it moved all the way up to €3.39 and now it’s back at €2.99