Grocery price war breaks out as Lidl follows Aldi with string of reductions

Discounter Lidl said it is cutting the prices on more than 100 items.

It claimed there are reductions of up to 35pc across a wide range of products, from fresh food to frozen favourites, cupboard staples to bakery treats and home essentials.

It comes a day after rival discounter Aldi said it was cutting prices by up to 23pc.

Aldi said the cost of a typical trolley bought by a family will drop from €121 to €106.

Its rival Lidl has now come out with price-cut announcements a day later.

It said the price cuts for 100 items come on top of price reductions on more than 600 products since October 2023.

Pressure comes on Dunnes Stores, Tesco and SuperValu to announce similar price cuts.

Recent Kantar data found that the majority of Irish people surveyed said they are extremely or very concerned about the rising cost of groceries. Consumers are managing their household spend by buying cheaper groceries and purchasing products on promotion more often.

Chief commercial officer at Lidl Ireland Kevin Haverty said: “Whilst grocery price inflation continues to slow, we are acutely aware that the cost-of-living crisis continues to pose significant challenges for our customers and our suppliers and we’re working harder than ever to continue delivering our quality products at market leading prices.

“We’re constantly looking to offer the lowest prices, having slashed prices across more than 600 products in the last three months.”

Independent retail experts said drops in energy and other production costs are being passed on to shoppers amid intense competition between supermarkets in the traditionally slow trading months at the start of the year.

However, farm organisations have warned that the pressure on Irish food producers is a threat to the long-term sustainability of their sector.

January is traditionally a prime time for introducing price reductions, said Damian O’Reilly, a lecturer in retail management at TU Dublin.

“The cost-of-living crisis is easing, inflation is down significantly from last year, and now is the time after Christmas when consumers tend to spend less and retailers are jockeying for position,” he said.

Aldi reported price reductions of up to 23pc on some products. Items being cut in price include cold meats, protein puddings and yogurts. Aldi cut the cost of 170 seasonal products before Christmas.

However, the potential for a price war between grocery retailers has been criticised by the Irish Farmers’ Association (IFA).

“If the retailers want to engage in combat for customers, it cannot be at the expense of farmers and producers,” IFA president Tim Cullinan said.

“The idea that primary producers can afford to take a lower price flies in the face of higher input costs.”

He added that the food chain “cannot survive” if pressure is placed on Irish producers.

“Retailers cannot use their dominant position in the food chain to reduce farmers’ margins while protecting their own,” he said.

Grocery price inflation here was 8.6pc in the three months to the end of November. This was the lowest level in more than a year, research group Kantar reported.