Summary of IPLC research and conclusions:

Retailers in the EU aggressively respond to hard discount. In each country included in our research the budget Private Label of the mainstream retailer was priced lower (2 to 16%) than the price level monitored at Lidl in the respective country.

Product quality shows a different picture, however. For all products included in the research quality of Lidl products appeared to be at the same level as the national brand. In many cases the budget Private Label offered by the mainstream retailer was of a different, mostly lower quality than the quality of the national brand and the Lidl Private Label.

In most cases a more basic packaging quality and design is used for budget Private Labels in the mainstream retailer compared to the national brand and Lidl.

Mainstream retailers do not facilitate shoppers to compare prices in store as deviating packaging sizes for their Private Labels are used.

Mainstream retailers make an effort to avoid losing shoppers to hard discount by offering a range of budget Private Labels. However, this strategy could result in profit erosion or have a negative impact on overall shopper trust in the retailer brand.

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