The ongoing battle for market dominance between Lidl, owned by a German conglomerate, and Biedronka, owned by Portuguese company Jeronimo Martins, has intensified as Polish consumers contend with the reinstatement of a 5% VAT rate on essential food items since April.
Rzeczpospolita highlighted that the rivalry is now ensnaring other supermarket chains, adversely impacting customers and the wider retail landscape.
Ryszard Jaśkowski, president of KZRSS Społem (The National Audit Association of Consumer Cooperatives), emphasized the significant challenge and costs that other trading companies are facing due to the price war.
"Every war involves casualties," Jaśkowski stated, citing the confusion and potential harm caused by constant promotions, such as the sale of vodka for PLN 9.99 (EUR 2.33), which also incurs losses for the state budget in excise duty.
"Customers also lose out, offers are constantly being changed, new ones appear. We have alerted the authorities to this, but there has been no response," Jaśkowski said. While advocating for competition, he underscored the need for it to be natural and necessary.
The price war is compelling all players in the industry, including logistics, transportation, and marketing, to slash costs. Łukasz Janota, director of category management support at Aldi Poland, said that “there is also increased pressure to negotiate with suppliers, which for many - especially smaller ones - can be a burden.”
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Source: Rzeczpospolita