2024-09-08 07:30:01
A strategic turning point for Lidl France
After 35 years of refusal, Lidl France is changing course and now accepting meal vouchers in its stores. “It’s something we didn’t do before. We’ve never done it in 35 years.”stressed Michel Biero, vice-president of Lidl France, during his announcement on BFMTV on August 29. This decision marks a break in the commercial strategy of the German brand, which had until now refused this form of payment, citing management costs that were too high for its economic model.
Since September 2, 2024, customers can pay for their food purchases with their meal vouchers in the brand’s 1,600 French supermarkets. However, only payments by meal voucher card will be accepted, paper tickets being excluded from this new policy. Lidl has set a limit of 25 euros per day and has excluded certain products from the offer, such as alcohol, confectionery, pet food and baby products.
Attracting new customers
The brand hopes that this change will attract a new stream of customers who use meal vouchers for their food expenses and usually turn to other brands. To prime the pump and strengthen this attractiveness, Lidl is also offering vouchers worth 10% of the total amount of purchases paid for via meal vouchers to all holders of its loyalty card, from September 2 to 30.
These coupons will only be valid for seven days, but this commercial gesture, unprecedented for Lidl, shows a clear desire to attract a wider clientele, while retaining the loyalty of the brand’s regulars. This initiative also aims to respond to the growing difficulties of French consumers.
A response to the difficult economic context
Lidl’s decision comes in a context of a purchasing power crisis, with prices remaining high despite slight deflation. “Even if we are in deflation today with prices down by less than 1%, consumers do not see it because we are still at +11% compared to two years ago”commented Michel Biero.
The vice-president of Lidl France highlights the difficult decisions that French consumers face. “There is a decrease in consumption of pleasure products, fresh products, like fish”he specifiesHaving successfully deconstructed its image as a hard discount brand reserved for the poorest to become the French people’s favourite supermarket brand, Lidl is now playing the social responsibility card, assuming its role as a pillar of the ecosystem of large-scale distribution brands in France.
Remaining essential, taking care of its image, attracting (re)entry of regulars from other stores – the brand considers these gains to be more important than the additional administrative work costs for teams that have historically been operating on a tight schedule and are always reduced to the bare minimum. It remains to be seen whether this strategy will bear fruit in the long term.
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