Aldi is eyeing up a slice of the burgeoning online grocery market, following a major investment in a dedicated home delivery unit which has been handling doorstep food parcel distribution during lockdown.
With online deliveries now accounting for 11.5% of the £119bn UK grocery sector – and one in five consumers ordering via the Internet – data from Kantar and Nielsen shows that Aldi and Lidl’s growth has been affected by their lack of online services during the Covid-19 pandemic.
In stark contrast, Tesco reported a 48.5% jump in UK online sales in Q2, soaring by more than 90% in May alone. The rise contributed to sales surge of 8% at Tesco, reaching £13.4bn over the three months to May. Tesco doubled its online capacity over a five-week period.
Aldi and Lidl have been forced to explore new methods of providing online delivery while maintaining low costs. Aldi partnered with Deliveroo in May to offer online grocery delivery for the first time.
According to a report in The Grocer, Aldi’s logistics partner, Armstrong Logistics, built and launched the dedicated home delivery division as part of its commitment to deliver more than 30,000 of Aldi’s food parcels to shoppers’ doorsteps during lockdown. It said it was now planning to expand its warehouse capacity by 70%.
The supplier’s chairman and founder, Justin Armstrong, said: “The Covid-19 crisis has sparked a retail transformation in the UK. Our investment in our ecommerce offer is a natural evolution of our business.
“During the pandemic we demonstrated our ability to handle increased volumes – managing a 300% spike literally overnight whilst still maintaining our unrivalled on-time delivery rate. We see e-commerce as the next stage in our journey.”
Supermarkets under pressure as Amazon Fresh expands
Ocado boom to push M&S shoppers to back of the queue
Forget material world, here come caring, sharing Brits
Grey expectations: Over-55s switch to online shopping
Coronavirus-themed ads strike a chord with consumers
Crisis-hit consumers more willing to try out new brands
Online shopping chalks up 20% growth to reach £80bn