Stack it high and keep prices low is real winner during Covid crisis

At a time when fast deliver y and virtual shopping is regarded as key for drawing in consumers, Lidl and Aldi seem to have flown in the face of general retail wisdom.

The German brands – along with other discounters – have fared remarkably well duri n g t h e c o r o n av i r u s c r i s i s , with sales rising by 11 per cent over the past year, according to new analysis from Mintel. Across the sector, grocer y sales have risen by around five per cent, driven by the closure of non-essential retailers during the peak of lockdown and beyond.

However, while online gro - cery deliveries have rocketed – the Mintel report found that 40 per cent of people say they have started shopping online more – neither Aldi nor Lidl offer a full-scale online service.

Aldi is currently trialling a click and collect service, while Lidl seems to have abandoned plans to go online after closing down the digital arm of its business. This all appears to be in stark contrast to what we are told consumers want: a slick website with almost instant delivery.

The key is price. Many people have b een made redundant during the coronavirus crisis, while others, although they may still be in work, fear for the future of the economy. The brands have also, potentially due to their European roots, m a n a g e d t o s t r a d d l e t h a t tricky chasm between budget and quality: Lidl prosecco has won national prizes, while Aldi’s Chesham bronze turkey has been named the best this Christmas in this year’s Quality Food Awards.

Aldi and Lidl have also advertised heavily during the crisis, which they are arguably more able to do than some of their competitors due to their lean operation model. They employ far fewer staff, proportionally, than the likes of Tesco o r S a i n s b u r y ’s , wh i l e t h e i r store estate is also less costly – they do not have the burden of the huge hypermarket sites which the bigger brands took on a few years ago.

At a time when people want to get into a shop, pick up what they need and leave, frills and a t t e n t ive c u s t o me r s e r v i c e b ecomes less impor tant. In fact, it could b e argued that they b ecome a negative at a time when people want as little contact with as few people as possible.