This is one of the good news from the latest Statec economic report, published on April 30: food inflation shows very limited progression in Luxembourg at the start of the year. Thus, the famous national consumer price index (IPCN) limited only to food products (and non-alcoholic drinks) only increased by 0.16% in March 2024 compared to February. That is to say a percentage slightly lower than what we saw in Belgium over the same period (+0.25%) but also higher than a French index linked to food which has not increased.
How far away the time seems when these same indices could be displayed in double-digit percentages… But nevertheless, the burst crises experienced in recent months and the inflation that they have generated have necessarily left traces and, undoubtedly, also changed certain habits among consumers.
Two brands, the same niche
During these periods, they turned more easily towards hard-discounters in food (such as Lidl and Aldi) and their slashed prices. And there are certainly many who have continued this habit afterwards. Convinced by the prices, but also by the stores which no longer have much in common with the austere premises of the beginning of the century where the boxes of products were sometimes placed on the floor. Moreover, it is not for nothing if, over the last five years, “hard-discount supermarkets” have seen their sales areas increase by more than 35% in Luxembourg.
But if hard-discounters are now much more mainstream in everyone’s eyes, do they display the same attractive prices everywhere? Or, put another way, aren’t there great opportunities to be had if you decide to cross the border to do your shopping?
Aldi now has 18 stores in Luxembourg. Lidl: 13. © PHOTO: REUTERS
Virgule therefore decided to carry out a comparison at the level of the two brands in the hard-discount food sector most represented in Luxembourg: Lidl (13 stores) and Aldi (18). Two brands which also operate in a similar niche, with the motto of offering their customers the best value for money.
Their basis: private labels
A comparison carried out in a geographical area which lends itself perfectly to the exercise: the so-called “three borders” region (Belgium-France-Luxembourg), where an impressive number of supermarkets are concentrated. We visited the Aldi stores in Differdange, Longwy and Athus, as well as the Lidl stores located in Pétange, Mont St-Martin and Athus.
For each of these two brands, we established a substantial basket (45 products at Lidl, 48 at Aldi) taking care that these products are available in the three territories. Which is not so simple, given that Lidl and Aldi mainly use their own private labels. The latter are not necessarily the same from one territory to another, each country having its own pricing policy but also the right to decide on its range of products according to the tastes, preferences and expectations of its consumers.
In order to be able to carry out our comparison, we focused on the few distributor brands present jointly in Luxembourg, Belgium and France, as well as on the major international brands. And this, while paying attention to taking similar packaging (when this was not possible, those which were closest to it were chosen, while adapting the content according to the cost per liter or per kilogram) and basing ourselves on full prices, therefore not taking into account the various promotions.
Up to 15% difference
What emerges from this mini-study? First of all, at Aldi as at Lidl, it is advantageous to fill your shopping cart in France.
Thus, at Lidl, the addition of the price of our basket of 45 goods amounts, on the Mont St-Martin side, to 146.15 euros, or 10.5% less than in Pétange (161.43 euros ) and 15.2% less than in Athus (168.38 euros).
The same goes for Aldi. Since in Longwy, our shopping cart of 48 products cost 167.26 euros, or 3.8% less than in Differdange (173.56 euros) and 12.12% less than in Athus (187.75 euros) .
Figures which therefore do not depict a generality, but a particular situation. However, it confirms what other media (Belgian and Luxembourg) have already observed in recent years, namely that it is always more advantageous to do your shopping in France. A conclusion which therefore also seems valid when it comes to food hard-discounting.
And on the big brands: which is the cheapest?
The reasons which explain this French advantage are known: a larger market where distributors are subject to greater pressure, some (like Leclerc) not hesitating to really cut prices. Without forgetting differences in VAT but also in salary costs.
If private labels are the “cornerstone” behind the Lidl and Aldi groups, certain major brands (like Ferrero, Coca, Pepsi, etc.) remain very present on their shelves. They even represent most of the products that these two mass distribution behemoths have in common in Belgium, France and Luxembourg.
Which pushed us to wonder which of the two was the least expensive for these goods highly sought after by consumers. A comparison of around ten properties which does not aim to draw major conclusions but which allows, once again, to see that it is in France that we pay the least (ahead of Luxembourg and Belgium which is still good last). But also that, overall, Lidl appears cheaper than its competitor on these products.
Finally, if you are wondering (like us) whether these products from major brands remain cheaper at these hard-discounters than at other major distribution players, we advise you to take a look at the little animation above.
You can see another comparison there. And this, for four flagship products: the pack of regular Coca Cola, that of Pepsi Max as well as the one-kilogram pots of Heinz Ketchup and Nutella spread. In addition to the prices displayed in the six Lidl and Aldi stores that we visited, we added those of three other major brands in the region (Cactus de Bascharage, Auchan de Mont St-Martin and Cora Messancy (via prices displayed on its online service)) and the Auchan Luxembourg website. Spoiler alert: the answer is not necessarily what you expected…
Luxlait, Battin, Bofferding, …
“Our own brands are our cornerstone. They represent 90% of the shelves in our stores,” explains Jason Sevestre, external communications manager for Aldi stores established since 1991 in Luxembourg. At Lidl (which arrived in 2001), we are rather “90% for Belgium and 80% in Luxembourg” confides, for his part, spokesperson Julien Wathieu. “Around a hundred references are specific to our Luxembourg stores” adds the latter. These are products from Luxembourg brands or of Portuguese origin, most of which are also found in Luxembourg Aldi. Examples include Luxlait, Battin, Super Bock, Bofferding, Let’z Chips and Rosport.
