During a recent business trip to Cologne in Germany I called to a city centre Lidl outlet and was pretty shocked to see the price difference between what Lidl charge in the highly competitive German market and what they charge in my local Lidl in Ireland. The prices seem to be higher right across the board but [above] are a few examples .
Other examples included the fact that the lowest cost 2L bottle of mineral water in Lidl in Ireland is €0.54 while in Germany, the cost is €0.19.
So Why The BIG Difference?
- Could it be rent & rates -It is more expensive to rent a shop at the edge of say Portarlington than in a city centre location in Cologne? I think not.
- Could it be rates of pay – Again no, Germany does not do low cost labour.
- How about transport costs? – When our company imports containers of goods from China, it normally only accounts for 2% of the product price, so again there is no logic to it.