If they're doing so poorly, why are they giving such steep discounts in Germany and not charging Austrian prices to bump up their margins? Are they stupid to leave so much money on the table?
There is significantly higher competition in Germany than in Austria when it comes to supermarkets. Grocery chains might very well want to push up the prices more to restore margins but might find it hard to do so.
The obvious answer is that they are not giving steep discounts in any country. Almost certainly their gross margins are between zero and three percent in both countries.
