The drugstore leader dm has recently made a conspicuous increase in the number of articles – a change of course that not only surprises market researchers. What is behind it?

Munich – The well-known drugstore chain dm has recently been set on a completely new pricing strategy: The prices of numerous products were increased enormously in a period of only three weeks. With this decision, the market leader in his segment surprised not only numerous market researchers and experts, even the average Joe consumer is likely to surprise the new diplomacy – after all, the chain was previously regarded as the eternal champion of the constant low price.

But according to a media report of the food newspaper, the group has already adjusted the prices of more than 1000 items in the online store. Also in some stores articles should have become more expensive. The price increases are moving according to LZ between 10 and 40 cents. The liquid soap of the own brand Balea has been increased in the online shop, for example, by 10 cents to 65 cents, while the price of the detergent Ariel of 30 cents even rose to 4.85 euros.

Is the drugstore chain possibly no longer entitled to price leadership?

Four years ago, the retailer was still on a completely different strategy and lowered the prices of more than 800 items – CEO Sebastian Bayer was then, according to information from the online portal Chip to understand that one wants to stick to the low price strategy. The currently radical price policy change astonished market researchers even more – some even speculated that dm may no longer have any interest in claiming the price leadership in the drugstore segment for themselves. "With the new pricing policy, dm is moving away from its claim to price leadership," a trading manager speculated in an interview with the Lebensmittelzeitung newspaper.
However, according to the LZ, such and similar speculation was vehemently rejected. Rather, the price adjustments were made dependent on economic factors and the market environment. Maybe Rossmann and Co. will follow soon.

Aldi and Co. make life difficult for drugstore chains

Although discounters such as Aldi and Lidl are now putting pressure on drugstores offering drugstore products at enormously low prices, most drugstores are still successful. According to trade expert Robert Kecskes, this is superficially linked to the fact that customers still feel more comfortable in drugstores and enjoy shopping more than in discount discounters.

Accordingly, the price is not always the decisive decision criterion for many customers. Nevertheless, it will still be seen whether the enormous increase in price on the part of the market leader is not too daring.



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