Blog: Dean BestA Penny for Aldi and Lidl's thoughts....

Dean Best | 12 February 2009

Effective PR has been a key factor behind the rise of the discounters in the UK, particularly from Aldi.

The German giant, however, would do well to also keep any eye on what is happening in its own backyard.

Germany, the European market that is almost synonymous with cut-price retailing, is, unsurprisingly, also seeing its own price war as the downturn bites.

And it is the likes of Penny, the discount chain owned by German retailer Rewe Group, that is making great play of the value it can offer consumers.

Today (12 February), Penny trumpeted the results of a survey by German TV station Stern TV, which the retailer claimed showed it is “the cheapest discounter in Germany”.

Penny has launched a series of pricing offensives since the turn of the year in the battle for cash-strapped German shoppers.

“We will continue hard and consistently in our price-performance work: top quality at the lowest prices – simple, fair, honest,” claimed Rewe executive Armin Rehberg.

It's likely that the likes of Aldi and Lidl will not take that lying down.


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