Aldi's no-frills retailing set to thrive in post-pandemic world

Aldi's no-frills shopping will thrive in Coronavirus times.

Now, it seems, the discounter is set to challenge the major multiples even further, unveiling a £1.3 billion expansion, which will see it open 100 new stores in the coming year, taking its total number of UK outlets to 1,200.

Of course, Aldi is not a newcomer to the market. This year marks 30 years in the UK for the brand, while Lidl is not far behind, celebrating its 26th anniversary here this year.

The latest data from Kantar for the twelve weeks to 6 September shows that Aldi currently has eight per cent of UK grocery market share - close behind nearest rival Morrisons with just 10.1 per cent. The figure has been gradually increasing in recent years, after hovering at around just 6 per cent of market share three years ago.

Sales have also been strong, rising to a record £12.3 billion last year in the UK and Ireland.

The company, which brands itself as Britain’s lowest-priced supermarket, led by chief executive Giles Hurley, has obviously decided that it is time to step up a gear.

It is still, however, marking itself out from other retailers by its lack of a loyalty card, as well as two-for-one deals or similar multi-buy offers, claiming that it wants to give all shoppers the best value, rather than just those who have signed up.

Rival Lidl, on the other hand, introduced its own version of a customer card, just this month.

Perhaps most significantly, Aldi has recently decided to dip a toe into the water of online grocery retailing, quietly launching a click and collect service in the north of England - initially for colleagues only and then last week, rolling it out to local shoppers.

It yesterday refused to comment on when - or if - the service would be available in Scotland, although it seems unlikely that it will not, given the increased demand for online retailing.

The decision may well be the making of the brand. Where Aldi’s strength lies in selling cheap, yet decent food, its weakness is arguably in its in-store experience, where overly-bright strip lighting and piled-high displays do not encourage shoppers to linger in its aisles.

For most of us, of course, that doesn’t matter - hence why a million UK shoppers already migrated to the German discounter last year, taking the total to 18 million.

However, if the Waitrose and M&S stalwarts can buy their parma ham and essential houmous online without actually having to set foot inside an Aldi, they may well also be convinced to make the move.

Another silver lining of the Coronavirus outbreak for Aldi is, of course, that no-one wants to linger in the aisles of supermarkets anymore, making the premium experience of Waitrose, or even the likes of Sainsbury’s, somewhat less attractive.

There is no doubt that in this new shopping environment, no-frills retailing will continue to thrive.