Føtex price matching policy under scrutiny from competitor

Lidl calls big box store’s pledge to automatically match lowest available prices “confusing”

A promise by hypermarket Føtex to automatically match the prices of discount chains will not change customers buying habits, according to a  Lidl spokesperson

Føtex rolled out the Prismatch” price matching scheme on Monday. The company said that they will automatically keep track of the prices at discount chains Lidl, Fakta, Rema 1000 and Aldi and make sure that customers are never charged more for the same products. Any discounts will be calculated and applied at check out.

The total purchase has to be at least 200 kroner and the rebate can not exceed 100 kroner. Discounts apply only when the exact same brand name product is on offer at both stores and do not include meat, fruits and vegetables.

Lidl executives in Denmark called the rules "confusing" and said the exemptions mean that the campaign will have little effect on its business.

"Our business model is to give our customers the confidence that we always sell all of our goods at competitive prices," said , Finn Tang, Lidl Denmark's managing director, to Jyllands-Posten. "Føtex cannot seem to match that, and now they want customers to figure out a math problem to get a discount.”

Tang said that the Føtex campaign was too hard for customer’s to understand and that if the chain really wanted to make a difference it should permanently lower prices.

“Their discount is taken on the total purchase price, not individual items, so a customer has no idea what they may be saving until they check out,” said Tang. “We match Føtex’s prices on any similar brand and have better prices on fresh fruits, vegetables and meat.”

Lidl, Fakta, Rema 1000 and Aldi currently only account for six percent of the grocery market, but deep discounts, especially on staples like milk, have been steadily pulling customers away from the larger chains.




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