Lidl Switzerland Takes a Stand: Responsible Pricing Policy Instead of Price Wars

Responsible Pricing with Foresight

The retailer is aware of its dual role: Lidl Switzerland is a partner to agriculture and simultaneously stands for the best prices for its customers. To avoid destabilizing local production, Lidl Switzerland does not initiate price wars in segments such as meat or bread, as this could have long-term negative effects on the upstream and downstream value-added processes. In response to price adjustments such as a recent competitor's reductions in meat and bread prices, Lidl Switzerland adjusted prices to maintain the price promise to its customers and to offer the best prices in the market. The initiative did not originate from Lidl Switzerland.

Andreas Zufelde, Purchasing Director of Lidl Switzerland: "Price adjustments are part and parcel of daily business in retail to remain competitive. Our aim as a discount retailer is to be a price leader. When raw material markets stabilize, such as with cocoa, we proactively and immediately reduce sales prices. We call this fair and conscious price leadership."

Lidl strengthens Swiss value creation through 'Qualité Suisse'

Lidl Switzerland opts for dialogue instead of confrontation and maintains close communication with all stakeholders in the value chain. As a visible sign of support for Swiss value creation, Lidl Switzerland particularly promotes products with the homegrown brand 'Qualité Suisse'. 'Qualité Suisse' is currently the fastest-growing product group in Lidl's assortment. This growth directly benefits Swiss farmers and local production, proving that fair prices for producers and attractive offers for customers are compatible.

Nicholas Pennanen, CEO of Lidl Switzerland: "Reducing the discussion to just shelf prices falls short. Our strategy is responsible price leadership, which considers the sensitive segments of agriculture, rather than launching price wars at their expense. We are proud to be a reliable partner for Swiss producers and clearly differentiate ourselves from competitors who unnecessarily increase pressure on agriculture."

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