A report by Verdict Research suggests that discount grocery stores like the German based Aldi and Lidl have the ideal opportunity to grow their business, during the economic downturn.
The European countries of UK and France have been particularly singled out. While the cash conscious Germans currently spend 43.8% in discount grocery stores, the UK accounts for just 3.7%, with France somewhere inbetween on 14.6%.
It is no secret that stores such as Aldi and Lidl have increased their market share in the UK since the start of this year, but it appears that there is a lot more to be had.
From personal experience I have tried both Aldi and Lidl and there is nothing to choose between them. My view is that the cheap products are cheap because they are not very good and real bargains, for me are hard to find in their stores.
So while I would agree the market is ripe for growth in the discounted grocery line, Aldi and Lidl would have to improve the quality of it’s products somewhat to compete with, for instance Tesco own brand products.
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