However, the path to that position last year was particularly challenging; how are they market tensions over margin restrictions and administrative pressures shook, which put trade in Serbia under the scrutiny of the public. While inflation is treated as a natural calamity, Lidl responded to that uncertainty by promising low prices every day, proving that for them price is a matter of pure mathematics and surgically precise logic.
We spoke with the Director of Procurement (CMO) and member of the Lidl Serbia Management Board, Nikola Balaban, about how the most affordable consumer basket is "packaged", why Serbian cheese "Adriatikos" is a hit in Bulgaria and how they prepared local producers to think up to a year in advance.
WEATHER: Lidl follows the rumor that it offers the most favorable consumer basket* in Serbia for 9 months in a row. In a country where food prices are a favorite topic for whining over coffee, that sounds like a marketing slogan. Where is the doorknob?? Are there good negotiations with suppliers or are there any? "secret formula"?
NIKOLA BALABAN: The fact that we have been offering the best consumer basket in Serbia for nine months, according to the NMS Market Research agency, is the result of our resilience, which comes as a consequence of a clear business strategy, through process optimization and operational efficiency. Our model is clear: we do not keep any savings we achieve in the supply chain, from the planning process of goods and procurement, through the organization of warehouses and logistics processes, to the way goods are displayed in stores, but strategically "pour" it into a lower price on the shelf.
The bottom line is that we do not form prices through business tactics, but build them based on a clear vision of where we want to be - and that is to be the first choice for all citizens of Serbia for shopping and the most favorable place of purchase. At the operational level, this implies detailed and precise planning and management of all processes, especially the assortment. How do we achieve this? For example, we give our suppliers requirements weeks in advance, and for special offers even up to two months in advance, depending on the item. When, for example, you tell a chicken producer exactly how much goods you need up to eight weeks in advance, he gets valuable time to optimize his production and costs without stress. It is this predictability that we offer to partners and our suppliers, among other things, that is the key that allows us to reduce external costs and ensure the lowest price on the shelves. Therefore, it is a question of pure economic mathematics and responsible management of processes that ultimately result in lower bills for our consumers.
Speaking of mathematics, the data says that the average price of the total offer of Lidl products is without VAT and in Serbia lower than in Germany. How is it possible that we are cheaper than the home market, and we all constantly complain that everything here is more expensive than "outside"?
That paradox is actually the best proof of the strength of our model. It is necessary to understand that the final price is influenced by factors that consumers often overlook, such as the fact that VAT in Germany is lower, or that Serbia, as a country outside the European Union, bears additional costs in the form of customs duties and levies on certain categories of products. Nevertheless, despite these burdens or, for example, variations in energy prices, we in Serbia manage to offer a lower basic price, if we look at the entire range, than for example in Germany, thanks to good cooperation with local suppliers, planning and the status of the only discount chain in our country. A good example of cost savings is the localization of procurement; by switching from imported chips to domestic production, we reduced high transport costs and invested that difference in the final price.
There is an impression that Lidl requires extremely strict conditions and high production standards. Yet, you mention that your number of local suppliers has increased dramatically. What does that look like? "marriage of convenience" between German discipline and Serbian production?
I see our relationship with domestic suppliers first of all as a process of deep transformation and mutual maturation, and not just as a classic commercial cooperation. The number of our partners in Serbia is growing day by day, and in the past year alone, we have increased the value of purchases from local suppliers by as much as 16 percent. The bottom line is that we grow in sync - as Lidl develops, so does the Serbian economy, which is behind a large number of our products.
A good example of this progress is the meat industry. When we first arrived on the market, packaged meat technology in Serbia practically did not exist on this scale, while today our partners manage more than 20 state-of-the-art packaging lines that we implemented together. Also, we went through a similar journey with the local supplier Mlekara Kruna, at the beginning of the cooperation we processed about 7 tons of milk per day, while today that amount is as much as 45 tons on a daily basis. The special pride of our cooperation is the rich assortment of Greek yogurt that we are constantly innovating, and with more than 15 new products in preparation, we continue to build mutual success.
What we bring to the market is first of all security and therefore the possibility for development planning. This is especially well seen through our assortment of fruits and vegetables, which we purchase primarily from local suppliers in season.
In particular, our vegetable producers, such as potato or carrot growers, receive from us precise projections of annual quantities in advance. This predictability allows them to rationally plan the areas under planting, the procurement of seeds and storage capacities, eliminating market uncertainty.
This way of cooperation with all local suppliers represents a fair and stimulating business environment in which we provide suppliers with stability, safe purchase and consequently room for growth, and they in turn guarantee us quality and competitiveness for more than 700 domestic products in our regular assortment.
With low prices, Lidl always talks about high quality, but the average customer still has doubts"If it's cheap, Something must be missing.". How to set the best price-quality ratio?
In our system, a low price is never the result of a compromise with quality, but only a consequence of efficient organization and the company's strategic determination to offer the most favorable comparative consumer basket at all times. When we talk about quality, safety and standards, there is no room for negotiation. We are in daily contact with our manufacturers and suppliers through a specific Quality Management System, all our processes are designed to guarantee safety and quality, so that our consumers can rely on consistently high standards in the composition, taste, visual aspect and consistency of our products.
Our certificates such as IFS or Global GAP are not just a formality, but a mandatory "entrance" to our system that guarantees that each product has passed the strictest controls before it reaches the consumer. We are particularly proud of the GRASP standard, which extends our responsibility beyond the product itself, going one step further by focusing on social rights, safety at work and the absolute prohibition of child labor throughout the supply chain. Also, on the way to a better everyday life, we offer about 300 Fairtrade certified products, which ensure better living conditions for small farmers around the world, as well as about 180 Bio-Organic items produced without the use of synthetic pesticides or artificial fertilizers.
A good example of our commitment to quality standards is the fact that only in Lidl all fresh eggs are at least from indoor farming, including free-range eggs, which raises the standards on the domestic market. Such strict standardization is what ensures that every consumer, whether in Subotica or Pirot, always receives the same top level of quality. For us, "affordable" means smart business both for the company and for all our consumers.
There is that one. "the myth of 1500 items" with which you started. Today they, it seems, there is much more. Is it a consequence of adapting to a change in consumer behavior??
We expand the range in the direction in which our customers lead us, but we are also here to offer them something new and to influence consumer habits through our range. Since 2018, we have increased the offer by almost 50 percent, strengthening the basic food base, as well as categories such as fruits and vegetables, so today around 150 different items are on offer every day. We are trying to raise the standard when it comes to typical foods, such as tomatoes - from the fact that once the consumer habitually bought one variety, to the fact that now Lidl has a rich selection of as many as 15 different varieties.
It is clear that the consumer in Serbia has changed; he's still looking for quality basics, but at the same time he wants protein products, burrata, premium Prosecco or premium aged steaks at an affordable price. That's why we will continue to push the boundaries of the assortment in the future. Also, with our recognizable themed weeks and "tastes of the world", we provide customers with a specific combination of exclusivity and market stability that not everyone can easily follow.
The story about exports is particularly interesting. Has Lidl become a significant ambassador of the Serbian food industry??
For us, export is a strategic tool for strengthening the local economy and our suppliers. We are especially proud that through Lidl's sales network, Serbian producers also get opportunities for development and growth, which, in addition to strengthening, also contributes to the development of the competitiveness of the domestic economy. We are extremely proud of the EUR 22 million export of Serbian suppliers' products, primarily to the countries of the region, and only in the 2025 business year. Our projection and ambition is to double that figure in the next two years, which has become my professional and personal goal.
The best indicator of the strength of the domestic industry and a good example on the subject of exports is the success of our bakery products. Through strategic cooperation with a local supplier, we export as many as 40 million pieces of flatbread annually through the Lidl system, with significant placement on the demanding Italian market. This year, through the export of "Adriatikos" cheese to Croatia and Bulgaria, we actively helped solve surpluses on the domestic milk market. Our role is clear: we are not just a trade chain that operates in Serbia, but a strategic partner that successfully places authentic Serbian products on the map of Europe.
For the end, where do you see Lidl in Serbia in five years? Will you still be "edgy" a player who spoils the competition with low prices?
I see us as a leader that never stops raising the bar for the entire market. Our goal is to make the term "expensive" a thing of the past, at least when it comes to top quality food. In the next five years, the focus remains on innovation and uncompromising freshness - from a wide range of fruits and vegetables, our bakery that has become part of almost every consumer's basket, to a significant step forward in the premium segment of cheese, meat and fish. In this regard, I would like to share an exclusive piece of news: our signature Deluxe brand is now part of our regular range. With this, we decided that luxury would no longer be reserved only for holidays, but would become available to our customers every day of the year.
At the same time, through digitization and the Lidl Plus platform, we continue to personalize the shopping experience, making it even more efficient.
As far as the competition is concerned, if they follow us in lowering prices, I consider that a success - not only ours, but also a success for all citizens of Serbia. However, we will always strive to be number one in every sense, as our entire Lidl team work round the clock to ensure that low price is not just an occasional promotion, but a standard across the range, every day.
*Source: NMS Market Research agency. Research results in the period July 2025 - March 2026. Analysis of the value of the weekly consumer basket of food and non-alcoholic beverages. The research is based on the average consumer basket defined by the Republic Institute of Statistics and contains a maximum of 73 products. The analysis was performed in 5 retail chains: DIS, Idea, Lidl, Maxi, Roda, in 4 cities. More details about the research methodology: https://monitorpotrosackakorpa.nms.rs/
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