Aldi eager to gain share of the fastest growing area of retail

Aldi is trialling a home delivery service in partnership with Deliveroo, offering 150 Aldi products in as little as 30 minutes.

Sofie Willmott, Lead Analyst at GlobalData, a leading data and analytics company, offers her view on this news;

“With online food & grocery spend forecast to rocket by 25.5% this year in response to COVID-19, Aldi is keen to get a slice of the pie and is seeking ways to rapidly enter the e-commerce grocery market. The partnership will allow Aldi to gauge demand for home delivery on a small scale and will also enable it to test the process of picking items from stores allowing it to see whether the concept could feasibly be rolled out nationwide.”

“With appetite for online food shopping growing, Aldi is wise to find a quick solution as it is significantly behind the big four which have well-established digital channels and have been able to capitalise on the surge in demand in the last few months.”

“Aldi’s foray into online grocery will not be nearly as profitable as its store operation given that Deliveroo’s fees will eat away at already slim grocery margins. However, the limited product range will make picking orders fairly efficient and the partnership will allow the grocer to bypass the high set up costs involved in an in-house online food operation. Although initially on a small scale, the trial could quickly give Aldi access to a share of the fastest growing part of the UK retail market.”

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