Lidl and Aldi gaining market share - Surprise Surprise

[The Angry Capitalist]

As people's incomes get decimated it should come as no surprise to anyone that Aldi and Lidl are taking more market share in the supermarket sector.

Much to my disappointment, Lidl and Aldi are both private companies.

Looked into buying shares of these companies 4 years ago as it is obvious these two supermarkets are going to be the 2 biggest in the UK in a few years as the country goes into more decline.

https://www.bbc.co.uk/news/business-65820543

[Maghull Mike]

I was thinking about this today while walking the dog.

Tesco & Asda have BIG debts, as rates rise they try to pass them on.......Aldi & Lidl i suspect have nothing like the gearing, thus don't need to pass it as much...................

 

Mike

[The Angry Capitalist]

2 minutes ago, Maghull Mike said:

I was thinking about this today while walking the dog.

Tesco & Asda have BIG debts, as rates rise they try to pass them on.......Aldi & Lidl i suspect have nothing like the gearing, thus don't need to pass it as much...................

 

Mike

It's not just that.

Aldi and Lidl have business models that cater to low income households.

Everything from the way the supermarkets are designed and built with Lidl and Aldi having no toilet facilities and cafes and other things that add costs to the overheads.

Never shopped at both supermarkets much but been using them recently and even with the high inflation it surprised me how cheap they still are compared to the big supermarkets.

They must have been mega cheap before Covid-19.

The difference is significant and the growth in these two companies is going to be huge over the next decade in the UK.

 

[Maghull Mike]

Few check outs at Asda, little waiting in Aldi

[The Angry Capitalist]

2 minutes ago, Maghull Mike said:

Few check outs at Asda, little waiting in Aldi

Have noticed whenever I shop at Lidl it is rare I have to queue.

The major supermarkets it is usually the opposite despite what appears to be more staff working the floors there.

Can't figure out why that is.

You would assume the budget supermarkets would have longer waiting times.

That's usually how it works with cheap companies regardless of the type of industry involved.

[fellow]

All this is doing is pushing up prices in Aldi & Lidl. Some of their products have almost doubled in price 

[The Angry Capitalist]

Just now, fellow said:

All this is doing is pushing up prices in Aldi & Lidl. Some of their products have almost doubled in price 

But they are still significantly cheaper than their competitors and if there is more demand for their products it should allow them to have bigger economies of scale making them more efficient.

This should allow them to reduce prices or at least keep prices low.

[TheResponsibleHouseBuyer]

13 minutes ago, fellow said:

All this is doing is pushing up prices in Aldi & Lidl. Some of their products have almost doubled in price 

Yeah, go and compare you will see ALDL / LIDL price increases vs other suparmarkets. Yes you can argue thats because theirs were insanely cheap to begin with vs some of the price matchings going on with Sainsburys, tescos etc.

I still think ALDI / LIDL quality has gone down the pan but also price has gone up, so we the consumer have lost anyway.

[Unmoderated]

I visit Aldi and Waitrose regularly. 

Aldi's own brand whisky is surprisingly good for the money. For clarity I'm a big fan of whisky and will spend 10X that on something special, but for £17.50 I was blown away by how good it was. Their Highland edition was close to an Aberlour 12 or Glenfiddich 15 at roughly a third the price. 

Still.... if you buy the decent stuff at Waitrose then you can bulk out at Aldi. I do not rate their veg and fruit but their cooked and cured meat and cheese are decent. 

Still love Morrisons though. If it was walking distance I'd use them instead of Waitrose tbh. 

[TheResponsibleHouseBuyer]

8 minutes ago, Unmoderated said:

I visit Aldi and Waitrose regularly. 

Aldi's own brand whisky is surprisingly good for the money. For clarity I'm a big fan of whisky and will spend 10X that on something special, but for £17.50 I was blown away by how good it was. Their Highland edition was close to an Aberlour 12 or Glenfiddich 15 at roughly a third the price. 

Still.... if you buy the decent stuff at Waitrose then you can bulk out at Aldi. I do not rate their veg and fruit but their cooked and cured meat and cheese are decent. 

Still love Morrisons though. If it was walking distance I'd use them instead of Waitrose tbh. 

Dont forget your free coffee....

[onlooker]

26 minutes ago, The Angry Capitalist said:

Have noticed whenever I shop at Lidl it is rare I have to queue.

The major supermarkets it is usually the opposite despite what appears to be more staff working the floors there.

Can't figure out why that is.

You would assume the budget supermarkets would have longer waiting times.

That's usually how it works with cheap companies regardless of the type of industry involved.

I do all the shopping for my family and (depending on where else I am going that day) shop in Sainsbury's, Lidl and Tesco, and occasionally in ASDA and Aldi. The Lidl and Aldi staff seem to be incentivised to work quickly and flexibly, and not chat much to the customers. Their customers seem to be predominantly working people, so if you go off peak it will be quiet. By contrast, my local Tesco is like a drop in gossip centre for staff to chat to other staff, and to their mainly elderly customers. Of course many elderly customers go there for that reason alone, and those people shop mainly off peak.

[The Angry Capitalist]

17 minutes ago, TheResponsibleHouseBuyer said:

Yeah, go and compare you will see ALDL / LIDL price increases vs other suparmarkets. Yes you can argue thats because theirs were insanely cheap to begin with vs some of the price matchings going on with Sainsburys, tescos etc.

I still think ALDI / LIDL quality has gone down the pan but also price has gone up, so we the consumer have lost anyway.

The consumer always loses with inflation regardless of how good a company maybe.

[The Angry Capitalist]

14 minutes ago, Unmoderated said:

I visit Aldi and Waitrose regularly. 

Aldi's own brand whisky is surprisingly good for the money. For clarity I'm a big fan of whisky and will spend 10X that on something special, but for £17.50 I was blown away by how good it was. Their Highland edition was close to an Aberlour 12 or Glenfiddich 15 at roughly a third the price. 

Still.... if you buy the decent stuff at Waitrose then you can bulk out at Aldi. I do not rate their veg and fruit but their cooked and cured meat and cheese are decent. 

Still love Morrisons though. If it was walking distance I'd use them instead of Waitrose tbh. 

I use Waitrose too.

I find Waitrose is good for high quality products but for the rest they are just rip off merchants.

They have a good selection of raw cheese on their shelves and you can get good quality chorizo.

For basic things like toilet roll, washing up liquid, crisps and bin bags then Aldi and Lidl are much much cheaper.

Waitrose have a big mark up on branded items too be it Heinz or Kellogg's etc.

Their ready meals are expensive.

Some of their prices are outright disgusting. Daylight robbery.

[NoHPCinTheUK]

Prices will start to go down everywhere. Sainsbury’s already have entire section of ALDI match prices food. I’ve heard Costco is the cheapest of the lot anyway. 
 

 

[ECS2]

Lidl have increased prices more than most other supermarkets over the last year, along with Aldi. There was a recent report that looked into average price increases and they were both near the top.

 

As a regular we're talking 40 per cent annual roses on many items.

 

The idea they are are cheap was certainly true a year ago and before. Now it's less so on many items. Many don't seem to have twigged yet. Many staples are now no cheaper. 

[ECS2]

16 minutes ago, The Angry Capitalist said:

I use Waitrose too.

I find Waitrose is good for high quality products but for the rest they are just rip off merchants.

They have a good selection of raw cheese on their shelves and you can get good quality chorizo.

For basic things like toilet roll, washing up liquid, crisps and bin bags then Aldi and Lidl are much much cheaper.

Waitrose have a big mark up on branded items too be it Heinz or Kellogg's etc.

Their ready meals are expensive.

Some of their prices are outright disgusting. Daylight robbery.

Not true recently believe it or not. Waitrose cut prices about three months back on many products and incredibly were the same as Lidl. Eg butter went down to £2 in Waitrose while Lidl went up 30 per cent to £2 as well.

 

Lidl crisps up another 10p this week. Now only slightly less than Waitrose and around the same as the others. 

 

Lidl also cut back their loyalty app scheme and ditched weekend specials 

[ECS2]

45 minutes ago, TheResponsibleHouseBuyer said:

Yeah, go and compare you will see ALDL / LIDL price increases vs other suparmarkets. Yes you can argue thats because theirs were insanely cheap to begin with vs some of the price matchings going on with Sainsburys, tescos etc.

I still think ALDI / LIDL quality has gone down the pan but also price has gone up, so we the consumer have lost anyway.

100 per cent correct. I really wish I could find that recent report of annual price inflation in all supermarkets showing just how much Lidl and Aldi have increased prices. They simply aren't much cheaper now on many things. In more than a few instances they are above the other big players 

 

 

[TenYearToGetMyMoneyBack]

1 hour ago, The Angry Capitalist said:

Have noticed whenever I shop at Lidl it is rare I have to queue.

The major supermarkets it is usually the opposite despite what appears to be more staff working the floors there.

Can't figure out why that is.

In Lidl (which I was in last night) the staff wear earpieces. If the queue at the open tills gets too long someone is called from shelf stacking to man another till. I have seen them open a till to serve three customers then close it again.

[winkie]

1 hour ago, The Angry Capitalist said:

It's not just that.

Aldi and Lidl have business models that cater to low income households.

Everything from the way the supermarkets are designed and built with Lidl and Aldi having no toilet facilities and cafes and other things that add costs to the overheads.

Never shopped at both supermarkets much but been using them recently and even with the high inflation it surprised me how cheap they still are compared to the big supermarkets.

They must have been mega cheap before Covid-19.

The difference is significant and the growth in these two companies is going to be huge over the next decade in the UK.

 

People that shop in Aldi and Lidl also shop in Waitrose. 

Can't buy shares in any of them......more of profits can be passed to customers and staff......waiting to see what happens to JL.

 

[kzb]

Well I think the price difference has been much eroded in recent years.

You've got the "Aldi Price Match" in both Tesco and Sainsbury's.

There are some good deals with Tesco Clubcard and Sainsbury's Nectar prices.  With the Sainsbury's app I've been getting an average of 8% of my spend in Nectar points over the past couple of years.

You don't have to buy a big bag of carrots or onions.  You can buy them loose.

Some Aldi products are really not very nice at all.  The yoghurts aren't.  The butter is like some pasty lard or something.

So it is really not as clear cut as some of you think.

[TheResponsibleHouseBuyer]

big market share so they can do things like this:

https://www.manchestereveningnews.co.uk/whats-on/whats-on-news/aldi-erected-huge-billboard-city-27084782

[TheResponsibleHouseBuyer]

1 hour ago, ECS2 said:

100 per cent correct. I really wish I could find that recent report of annual price inflation in all supermarkets showing just how much Lidl and Aldi have increased prices. They simply aren't much cheaper now on many things. In more than a few instances they are above the other big players 

 

 

Right - the only way to beat inflation is to shop smartly. I dont have every supermarket within a 5 mile radius, but if you did you would go in one for xxx item cheaper on the week then shop at supmarket 2, 3 ,4 etc to get other bits and pieces. Shopping in LIDL and ALDI alone i think you will get scammed on a few items.

When i mean scammed, you still may get a cheaper basket, but at what cost? Smaller product, cheaper ingredients? 

[TheResponsibleHouseBuyer]

8 minutes ago, kzb said:

Well I think the price difference has been much eroded in recent years.

You've got the "Aldi Price Match" in both Tesco and Sainsbury's.

There are some good deals with Tesco Clubcard and Sainsbury's Nectar prices.  With the Sainsbury's app I've been getting an average of 8% of my spend in Nectar points over the past couple of years.

You don't have to buy a big bag of carrots or onions.  You can buy them loose.

Some Aldi products are really not very nice at all.  The yoghurts aren't.  The butter is like some pasty lard or something.

So it is really not as clear cut as some of you think.

This..... there's a lot of poor quality. This wasn't the case a few years ago, almost all their expensive stuff e.g. meats, wines/spirits were regarded very good, even beating bigger supermarkets on taste/quality.

Doubt that's the case anymore.

[TheResponsibleHouseBuyer]

You think LIDL/Sainsburys cares about its packaging? Or is this cutting costs somewhere here? I think the latter.

https://www.redditchadvertiser.co.uk/news/23569651.lidl-joins-sainsburys-disgusting-packaging-change/

Wonder when every other supermarket will follow suit?

Sugar tax levy 2018 - Lets fill every Co2 drink with aspartame.... We got rid of sugar - sugar = bad..... yeah okay.... and artificial chemicals are better right?

ok, will stick to drinking limescale, chlorinated hard water....

[wighty]

Sainsbury meal deal £5

TTD 4 Steak Quarter Pounders 454g plus  Budweiser 6x300ml

See Aldi / Lidl beat that.

 

Aldi own brand has increased significantly in price. Their meat and fresh food is worse quality than Sainsburys.

Still have a few things cheaper.

I get vouchers from Sainsbury most weeks- £6 off £40 spend next week.