Discount supermarket chains Aldi and Lidl look poised to accelerate their push into home delivery to satisfy burgeoning demand for online grocery shopping in a shift expected to endure beyond the coronavirus crisis.
Abdelaziz Abdou, a Deliveroo delivery rider, poses with a bag of Aldi groceries, as discount supermarket chains Aldi and Lidl look poised to accelerate their push into home delivery to satisfy burgeoning demand for online grocery shopping in a shift expected to endure beyond the coronavirus crisis, in London, Britain, June 17, 2020. REUTERS/Toby Melville
That shift is prompting the discounters to focus their attention on previously tentative online efforts despite a long-held conviction that the high cost of delivering fresh food makes it incompatible with a business model reliant on low prices and minimal service. The two family owned companies owe their success to the low prices they can offer because they keep running costs down by stocking a limited range of goods, boosting margins with a high proportion of own-label products and non-food special offers.
Aldi last week said that it has extended a trial of home delivery in partnership with Deliveroo. If that goes well, industry insiders say the service could be rolled out more quickly than an in-house solution because Deliveroo is already well established. Lidl, which opened its first U.S. stores in 2017, works with Shipt for home delivery there. It also signed up delivery partners in Spain and Ireland last year.
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