In the cut-throat world of retail, it's something of an anomaly: as discounters Aldi and Lidl have expanded around the world, both have managed to coexist in relative harmony.
In Ireland, however, a recent price survey carried out by Aldi, which claims that the discounter is the 'best-value supermarket in the country', has not gone down well with its closest rival.
Lidl Ireland said in a statement that it is considering taking legal action against Aldi due to 'factual inaccuracies, which have been blatantly miscommunicated' in the study, which was conducted by Grant Thornton, an accountancy and tax advisory firm.
Behind The Study
The study took a sample basket of 62 items, 'randomly selected' by Grant Thornton, which included products such as strawberry jam, fresh cream, honey, ice cream, rice, orange juice, cheese, yoghurt, soda bread, and a number of fruits and vegetables.
Based on its calculations, said basket was found to cost €65.04 in Aldi, €65.53 in Lidl, €76.54 in Tesco, €80.74 in Dunnes Stores and €95.50 in SuperValu – the five main supermarket groups serving the Irish market.
"We found that there are huge differences in pricing of similar, comparable products across the board, with significant savings to be made by consumers by shopping at Aldi, in particular," Grant Thornton's head of retail, Damian Gleeson, commented.
"Aldi offered the lowest prices on general, everyday groceries and was up to 47% cheaper than SuperValu, which is the most expensive supermarket surveyed," Gleeson added.
'Numerous Discrepancies'
Lidl took umbrage at the findings, noting that it was 'clear there are numerous discrepancies throughout. When calculated correctly and products are fairly compared, like per like, the basket price total for Lidl is actually lower than reported, making Lidl the cheapest supermarket in Ireland.'
It drew attention to the survey's choice of apples, strawberry conserve and bacon products, saying that inaccurate prices were shown corresponding to Lidl stores in Dublin, Galway, Limerick and Cork.
If rectified, this would reduce the Lidl 'basket' to €64.04, 'which is a full €1 cheaper than Aldi,' the retailer noted.
'We always have been and continue to be committed to offering customers unbeatable value right across our range,' it further noted.
'Never Be Beaten On Price'
Aldi's response? The discounter issued a statement reinforcing the survey's findings, adding that it 'confirmed what Aldi and our customers already know – Aldi are the lowest-priced and best-value supermarket in Ireland.
'Our commitment to our customers is that we will never be beaten on price, and we will maintain this position in the months and years ahead. Customers are now better informed as a result of the survey, and we support any independent surveys that promote competition and choice for the Irish consumer,' it further noted.
Competition between rivals is nothing new in this game, and this may well turn out to be a storm in a (discount) teacup, but if these are the early signs of a rift between two retailers that have thus far appeared to coexist in peace and harmony with each other, I'll make sure that I have the popcorn on standby.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
