German discount supermarket chain Lidl has announced it will cease all television advertising in France, citing overly restrictive regulations as the primary reason for the dramatic shift in marketing strategy.
Regulatory Frustrations Drive Decision
The company plans to redirect its advertising budget toward online video platforms, which it describes as a "strong development lever" for reaching French consumers. A 1992 decree prohibits retailers from advertising time-limited promotional offers on television, requiring that advertised products remain available at stated prices for at least 15 weeks.
Legal Battles and Heavy Fines
In July, Lidl was ordered by the Paris Court of Appeals to pay 43 million euros in damages to competitor Intermarche for illegal advertising practices. The ruling highlighted ongoing tensions between discount retailers and traditional French supermarket chains.
France's Second-Largest Advertiser
According to Kantar Media, Lidl ranks as France's second-largest advertiser across all sectors and media, with nearly 400 million euros in gross advertising investments during the first three quarters of the year alone. The company's decision to abandon television represents a seismic shift in France's advertising landscape.
Expansion Plans Continue
Despite the advertising pivot, Lidl France remains committed to aggressive expansion, targeting 2,000 stores compared to the current 1,600+ locations. The company's president has emphasized refocusing on the chain's core identity of low prices.
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