People often reduce their expenditure on food due to inflated prices.
Budget grocery shops such as Aldi and Lidl experienced a surge in sales recently. Professionals from the EHI Institute in Cologne credit this to the struggling economy and high inflation rates. As they put it, "Germans appear to be drawn to these retailers' price guarantees in the present economic situation."
The overall revenue in the food retail sector climbed by approximately 5% from 195 billion euros in the prior year to 204.5 billion euros. This increase, however, was primarily due to rising prices, as food inflation hit a high of 12% the previous year.
Bargain stores saw their sales skyrocket by an impressive 7% to reach 94.6 billion euros. On the other hand, supermarkets only experienced a modest growth of 4.3%, totaling 86.2 billion euros. Marco Atzberger from EHI attributes this shift in sales distribution to consumer shopping habits that adjust to global crises.
The surge in sales at budget grocery shops can be attributed to the high inflation rates, as people look for ways to save money. This increase in prices, represented by a food inflation rate of 12%, has significantly impacted the overall revenue in the food retail sector.
