‘Lidl plans online grocery service in UK’
There are some strong rumors that Lidl is looking to move into ecommerce, after the discounter created a holding company called Lidl Digital Logistics in the United Kingdom. According to the Daily Mail, this shows that Lidl is entering the grocery delivery market.
International Retail Index 2019
The definitive guide to international retail in 2019 and beyond. How do you rank? Find it out now.
It’s the first time that Lidl has expressed an interest in moving online. Previously, the German discounter has stayed away from ecommerce, because this industry didn’t fit with their low-cost business model. Lidl does however sell non-food items online in several countries across Europe and it does sell items such as wine online, but it has never sold fresh items such as groceries through an ecommerce website.
But things are about to change, the Daily Mail writes. The supermarket chain has created Lidl Digital Logistics, a holding company that has CEO Christian Hartnagel and CFO Dirk Kahl registered as its directors.
Delivery services open doors for supermarkets
According to retail analyst Natalie Berg, things have changed, so discounters like Aldi and Lidl can now combine ecommerce with their low-cost business model. “The rise in third-party delivery services is opening doors for supermarkets, allowing them to cater to the growing demand for online grocery without the hefty investment in infrastructure or systems”, she says.
Lidl: ‘No plans at the moment’
A Lidl spokesman talked to the Daily Mail and said that the company has a digital department already established within the business. “And, of course, online is something we’re looking at, but we have no immediate plans at the moment.”
Last year, the German discounter revealed a 1.7 billion euros expansion plan to open 60 shops a year.