As the “Lebensmittel Zeitung” reports, Lidl is now taking a big step. The discounter giant wants to drastically reduce the non-food range. Tools, clothing, televisions – customers will soon no longer be able to find all of this at Lidl.
The reason: the share of sales from the very profitable non-food products should actually increase to 15 percent. But falling demand due to inflation and logistics problems recently pushed the share below 10 percent.
According to insiders, Lidl has accordingly decided to significantly reduce the recently placed orders in the non-food sector for the coming financial year.
Nonfood is actually the second most profitable product range
While late deliveries were the reason for this in the past, more thrifty customers are now putting a strain on business. The Schwarz discounter is concerned about the purchasing power of customers because of rising energy prices. After the baking stations, the non-food campaign business is the second most profitable product range. Nevertheless, the high storage costs of non-food goods put an additional burden on the balance sheet.
But although the discounter clientele in particular is affected by inflation and purchases in the non-food sector have fallen significantly, especially for products over 20 euros, Lidl is still optimistic in the current situation with its wide range of products and online shop.
Aldi is also struggling with problems in the non-food sector
However, Lidl is not alone in reducing the shopping budget. An important Asian supplier reports a 30 percent drop in orders from many customers. And discounter competitor Aldi is also struggling with similar problems in the non-food sector.
According to LZ research, sales have dropped to less than 20 percent. Like Lidl, Aldi also has to adapt to the current situation with more flexibility and is in close contact with suppliers and logistics partners.
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