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COSMETICS

Cosmetics chain sparks toothpaste price war

Customers at dm cosmetics shops across Germany have been caught up in a toothpaste price war, after the shops announced they would "strike" over Colgate's decision to sell smaller packages for the same price.

Cosmetics chain sparks toothpaste price war
Photo: DPA

Head for the toothpaste aisle in any dm shop looking for Dentagard and you'll find a little empty spot on the shelf with a note.

“Same price for less contents: we're striking against that! dm.”

The chain says that it's fighting for its customers' interests after Colgate-Palmolive, the producer of Dentagard, decided to start selling the product in 75 ml tubes rather than 100 ml – but to keep charging the same price.

dm chairman Erich Harsch said on Tuesday that “we don't want to pass this price increase on to our customers.”

But a Colgate-Palmolive statement insisted that the multinational would not back down.

“As a producer of consumer goods, it's a normal practice to match the retail prices to increased costs, for example for energy and raw materials,” the company said in a statement.

“It's not usual to talk publicly about our dealings with our retail partners,” the company sniffed.

Armin Valet of Hamburg's Consumer Rights Centre (Verbraucherzentrale) welcomed the dm move, saying that customers often feel exploited by producers' hidden price rises.

“We are not unhappy at all with the fact that a retailer is taking a stand,” Valet said.

Cosmetics shops fear discounters

“The trick of reducing the contests without dropping prices is being used more and more often in retail,” marketing expert Martin Fassnacht of the WHU business school said.

“But it's new for a retailer to explicitly draw attention to the fact that a producer is making the cost/benefit relationship worse.”

Fassnacht said that dm's move could improve its image as an honest business and put pressure on Colgate-Palmolive – not to mention make the chain's own-brand Dontodent toothpaste look more attractive.

In fact, dm's move against Colgate may be prompted by fears of discount supermarket Aldi, which is adding more and more cosmetics products to its ranges and undermining prices.

“Not only classical supermarkets, but also the cosmetics chains have been worrying about [the discounters] for a long time,” Fassnacht said.

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SHOPPING

Danish stores to remove MobilePay from payment options

Over 500 shops in Denmark will no longer offer the popular app MobilePay as a payment option after the platform ordered merchants to purchase new hardware.

Danish stores to remove MobilePay from payment options

The Dagrofa corporation, which owns chains including the Meny and Spar supermarkets, has announced it will remove MobilePay as a payment option in its stores, business media Finans reports.

The decision could impact less than 1 percent of payments in the store which are currently made using MobilePay, the company said.

READ ALSO: 17 essential phone apps to make your life in Denmark easier

“The primary reason is that MobilePay will from now on demand a technical setup for the payment system in stores and with the investment that will neee, we have concluded that’s not the way we want to go,” Dagrofa’s head of communications Morten Vestberg told Finans.

Dagrofa owns the Let-Køb and Min Købmand convenience store chains in addition to Meny and Spar.

The decision will mean MobilePay is removed from some 530 stores altogether, although individual stores may choose to retain the payment app.

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