Stores in Switzerland’s border areas lose many customers to foreign retailers, where prices – especially given the favourable franc/euro exchange rate – are quite a bit cheaper.
Coop, Switzerland’s second-largest supermarket chain, has launched an advertising campaign aiming to win ‘shopping tourists’ back to Swiss soil.
To accomplish this goal, It has strategically placed in towns bordering Germany some billboard ads reading “Low prices without borders – save now in Switzerland.”
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How is Coop trying to beat German prices?
The posters feature the retailer’s “Prix Garantie” budget line, which is typically cheaper than its standard products.
According to Coop spokesperson Stefania Telesca, the retailer is using these posters “to make cross-border shoppers aware of Coop’s attractive product range.”
The campaign targets not only Swiss cross-border shoppers, but also local German consumers, who may not be aware of Coop’s budget-friendly products, Telesca said.
Since the campign is new, it is too early to say whether it has been successful in enticing Swiss shoppers to spend money in their home country, supporting local businesses, rather than abroad.
‘Guilty conscience’
But at least one expert believes the bid will backfire.
“Anyone driving across the border has already made their price comparison,” consumer psychologist Christian Fichter told Swiss media
“At most, the posters might trigger a guilty conscience – but that rarely lasts until the checkout,” he added.
That’s Swiss consumers, but will Germans actually be swayed by the posters to shop in Switzerland?
“Germans know that Switzerland is expensive,” Fichter said.
They could, however, cross the border for products that are cheaper in Switzerland, like chocolate, coffee, or electronics.
Tug-of-war
Coop wants Swiss shoppers back while Germany is bending backwards – figuratively, of course – to keep them on their side of the border.
How?
Though Switzerland had cut the tax-free allowance for cross-border shoppers by half – from 300 to 150 francs – in January 2025, Germans found a way around this problem.
To help their Swiss customers maximise the tax-free allowance without actually breaking the law, they are encouraging carpooling – for instance, four people per car, with only three actually shopping but the fourth entitled to an allowance as well.
And they are doing it with billboards of their own.
Edeka and Marktkauf retailers, for instance, are using posters showing a car with a Swiss flag and a family waving happily, accompanied by the slogan: “Shop together, save together.”
READ MORE: How German retailers help Swiss shoppers circumvent tax rules
