swiss Bread Prices Slashed as Aldi Sparks Retail Price War
Zurich, Switzerland – A price war has erupted in Switzerland’s supermarket sector, triggered by Aldi’s decision to considerably reduce bread prices. The discounter lowered the price of Ruchbrot (500g) to CHF 1.09 from CHF 1.29, a 13 percent reduction, citing a desire to ease the financial strain on consumers. ”Bread is an crucial staple food and we want everyone to be able to afford it,” the company stated.
The move has prompted immediate reactions from competitors. Migros will reduce prices on its semi-white bread and ruchbrot (500g) to CHF 1.00 starting Wednesday. Coop announced it will soon follow suit, lowering prices for semi-white and dry bread to CHF 1.00 per 500g, according to SRF News. Lidl and Denner have also pledged to offer Pfünderli for 99 centimes.
This escalating price competition arrives as Swiss bakeries face mounting economic challenges. Membership in the Swiss Bakers-Confectioners Association (SBC) has dwindled from 2,500 customary bakeries 25 years ago to just 1200 today, with increasing numbers of businesses forced to close.
The pressure on traditional bakeries is compounded by the rise of cheaper imported dough, sold by gas stations and discount stores. last year, Switzerland imported 161,000 tons of baked goods - a 50 percent increase compared to a decade prior.
Silvan Hotz, President of the Swiss Association of Master Bakers and Confectioners, expressed skepticism about the price cuts, suggesting they are a loss leader. “They bring customers into the store with a Pfünderli for a Stutz and they never leave with just a Pfünderli,” Hotz told SRF. He noted his bread costs almost four times more than the discounters’, representing a fair price for all involved in the supply chain – from farmers to bakers and sales staff – and fears the price war will disproportionately harm village bakeries.
