Supermarket dash: Budget brands Aldi and Lidl consider push into home delivery

Supermarket dash: Budget brands Aldi and Lidl consider push into home delivery

Demand has been ramping up amid coronavirus lockdowns and consumers looking for a good deal. The shift towards home delivery is expected to last beyond the coronavirus crisis.

And it is expected many consumers will look to keep using delivery services after the lockdown has been fully lifted.

However, the shift online has previously met resistance from the likes of Aldi and Lidl as they insist the cost of delivering fresh food makes it incompatible with their business model.

According to research, the online grocery market in the UK has almost doubled to take a 13 percent share in recent years.

Demand is growing and some have even launched petitions to get Aldi to start online delivery in the UK.

Last week, Aldi said its partnership with Deliveroo would be extended.

Following a successful start in eight stores across the Midlands, it has decided to try the trial in Camden.

The supermarket first started offering an on-demand delivery service last month.

If that partnership lasts, ordering goods online nationwide could happen faster than developing an in-house solution.

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Richard Thornton, Communications Director at Aldi, said: “In the three weeks since we launched our partnership with Deliveroo, feedback from customers has been very positive.

“Extending that partnership to around 100,000 people living near our Camden store will make it even easier for them to access great-quality, affordable food at Aldi’s unbeatable prices.”

Ocado recently announced it would be expanding its online offering, owing to huge online queues and a surge in demand since COVID set in in the UK.

It launched a fundraising round of £1billion, hoping to challenge the incumbent market leader Tesco.

Shares in Ocado have risen around 50 percent since this time last year, vastly outstripping growth of its competitors.

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It is trading around six percent lower today, following the trend of the broader stock market losses.

It now has a market capitalisation of around £14.5billion, which is more than Sainsbury’s, Morrisons and Marks & Spencer.

Ocado’s own customer surveys indicate the online shopping boom will continue.

Around 47 percent of customers who had upped their online spending since COVID began to spread expected to continue shopping online once the crisis is over. contacted both Aldi and Lidl for comment.

Published at Fri, 19 Jun 2020 13:10:00 +0000