26/08/2003 
ISN price monitoring on consumer prices for fresh pork
Comparing discount shops' prices to butcher's shops (difference just 17 %) and cut-price supermarkets (difference 42 %)
ISN's manager Detlef Breuer explained that the focus had been put on grilled bratwurst, steak, loin, filet and minced meat, because at the discount shops only barbecue products and shortly fried meat were on offer. Unlike the comparative groups, they simply did not offer the whole range of products. The so-called
The clear price advantage that had been expected was indeed confirmed, in favour of the discount shops, if compared to the cut-price supermarkets. Something astonishing came to light when the butcher's shops were compared with the discount shops: Not taking into consideration the grilled bratwurst, the butcher's shops prices were by just 17 % higher (or 0.94 Euros per kg) than the discount shops' prices were. This had not been expected, indeed. So the butcher's shops seem to be quite competitive. Prices at the cut-price supermarkets were even 42 % higher on average (or 2.32 Euros per kg) than those to be paid at the discount shops!
One had, however, to take a differentiating look at the cut-price supermarkets' pricing. Compared to the prices usually paid, pork were sold there at prices which -- dependent on the product -- were by about 27 to 60 % higher than those demanded at the discount shops. So, to keep their customers, the cut-price supermarkets offer special products every week that are sold at prices by 2 % (or 0.13 Euros per kg) lower than those at the discount shops.
ISN's chairman Franz Meyer zu Holte then said that
Here is Aldi with fresh meat!This way the headlines of many newspapers read at the beginning of this year. Which sounded like a declaration of war to the leadership of many cut-price supermarkets and butcher's shops -- people there felt very uncertain. Whilst Aldi is still working on the introduction of an overall offer of fresh meat, Lidl has already taken this step.
In order to shed some light on the matter, said Franz Meyer zu Holte, ISN chairman,
we did an eight-weeks' price monitoring for selected fresh pork products in Lower Saxony.The price monitoring was done at the Aldi, Lidl, Plus and Pennymarkt discount shops, at some well-chosen cut-price supermarkets like K+K, Coma, Famila, Edeka, Combi and at several butcher's shops.
The study aimed at specifically proving the differences in pricing between butcher's shops, cut-price supermarkets and discount shops, said Meyer zu Holte.
ISN's manager Detlef Breuer explained that the focus had been put on grilled bratwurst, steak, loin, filet and minced meat, because at the discount shops only barbecue products and shortly fried meat were on offer. Unlike the comparative groups, they simply did not offer the whole range of products. The so-called
basket of goodswas filled with the products mentioned before, and the grilled bratwurst was looked at individually.
The clear price advantage that had been expected was indeed confirmed, in favour of the discount shops, if compared to the cut-price supermarkets. Something astonishing came to light when the butcher's shops were compared with the discount shops: Not taking into consideration the grilled bratwurst, the butcher's shops prices were by just 17 % higher (or 0.94 Euros per kg) than the discount shops' prices were. This had not been expected, indeed. So the butcher's shops seem to be quite competitive. Prices at the cut-price supermarkets were even 42 % higher on average (or 2.32 Euros per kg) than those to be paid at the discount shops!
One had, however, to take a differentiating look at the cut-price supermarkets' pricing. Compared to the prices usually paid, pork were sold there at prices which -- dependent on the product -- were by about 27 to 60 % higher than those demanded at the discount shops. So, to keep their customers, the cut-price supermarkets offer special products every week that are sold at prices by 2 % (or 0.13 Euros per kg) lower than those at the discount shops.
As a result of the price monitoring, we found that the average prices for the products we chose for our `basket of goods´ -- leaving out the grilled bratwurst -- were 5.46 Euros per kg at the discount shops, 6.40 Euros per kg at the butcher's shops and 7.78 Euros per kg at the cut-price supermarkets. Special offers at the cut-price supermarkets were sold at an average price of 5.33 Euros per kg, ISN's manager Detlef Breuer finally explained.
Taking a special look at the grilled bratwurst, we found that its price was by about 50 % higher at the butcher's shops and the cut-price supermarkets.
ISN's chairman Franz Meyer zu Holte then said that
the study also showed that the discount shops' pricing strategy is a long-term one. The wide range of products offered at the meat counter as well as the service there demand their prices. With their naturally inevitable lower profit margin and their more favourable cost structure, the discount shops might probably cause an increase in pork consumption. With that, it finally serves the consumers and the specialised pig keepers.
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