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Bloomberg has a story saying that despite popular opinion that the Amazon-Whole Foods tie-up would have a big impact on supermarket prices, at the moment, “Aldi and Lidl -- two no-frills German discounters that are expanding quickly in the U.S. -- are putting more pressure on grocery giants such as Kroger and Wal-Mart Stores.”

Mike Paglia, a grocery analyst at Kantar Retail, says, “It looks a lot like a price war, and you’re starting to see those ripple effects.”

According to Bloomberg, “In a recent price survey of low-priced items, Kantar found that a basket in Charlotte, North Carolina, was cheaper at Wal-Mart than it was at Lidl -- a sign that the world’s largest retailer, which makes more than half of its revenue from the grocery business, has responded aggressively. It was the first time in seven years that Wal-Mart took the top spot in the study, displacing discount chain Dollar General Corp. Analysts say the steep price competition is evidence that retailers were trying to get the jump on Lidl.”
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