Lidl is cutting back on its non-food lines as the middle aisle loses its appeal with consumers and sales drop below a 10% share of the retailer’s total business.
A recent report in German trade publication Lebensmittel Zeitung revealed that Lidl is ordering ‘significantly’ fewer non-food lines for next year, in response to falling consumer demand and a number of ongoing logistical and supply issues.
Sales of non-food products typically account for around 15% of sales for the German discounter. This has fallen to below 10% across almost all markets, with sales of products over €20 hit the hardest as consumers cut back on the amount they are spending in the face of rising inflation and surging energy costs.
READ MORE: Discounters unite: Lidl and Aldi second only to Tesco for UK market share
According to online publication chip.de, Lidl has cut non-food orders which had already been placed for the next financial year.
The discount supermarket has supported its growth in the grocery channel with its renowned ‘middle aisle’ which offers a wide and eclectic variety of non-food products, but demand has declined as shoppers focus on essentials.
While non-food products typically offer higher margins, the increased cost of storage is also becoming problematic.
The report said that Aldi – which has also made a name for itself in the UK with its eclectic selection of ‘middle aisle’ non-food products – is also struggling with similar problems, with non-food sales falling to less than 20% of its total business.
Click here to sign up to Grocery Gazette’s free daily email newsletter
