Insight Report 11 minutes PremiumDiscounters Go Digital: Aldi and Lidl Move into E-Commerce Coresight Research December 2, 2016 Executive SummaryHard discounters Aldi and Lidl are moving into e-commerce in both the grocery and nongrocery categories. This year, Aldi announced it will move into the Chinese market purely through e-commerce, while Lidl Germany is planning to trial a grocery click-and-collect service in Berlin. These are our key takeaways on balancing no-frills discount with the added costs of e-commerce: If discounters are willing to invest to build scale in grocery e-commerce, using “dark stores” dedicated to picking online orders seems to be a better option than picking from regular stores, due to the small size of the discounters’ stores. New delivery options are lowering the costs of home delivery: using “Uberized” third-party couriers would be a more cost-effective, low-investment and scalable model than using temperature controlled, company-owned delivery trucks. This model is already being used by AmazonFresh in the UK. We believe one significant challenge will be the deleveraging effect of smaller average basket sizes online: the highly limited choice offered by Aldi and Lidl will almost certainly yield lower online order values than at nondiscount rivals. This would make the economics of online retail even more detrimental for discounters than they are for their nondiscount peers. This report is for paying subscribers only. Already a paying subscriber? Please log in to see the entire report.If you wish to learn more about our subscription plans and become a paying subscriber, click here. This document was generated for Other research you may be interested in: July 2023 UK Retail Sales: Wet Weather Slows Retail Sales GrowthE-Commerce Merchandising: Using CGI and AI To Increase Conversion and Boost Your Bottom LineWalmart To Expand Its Health Footprint, Plans To Nearly Double Its Healthcare Centers by 2025China Consumer Tracker: Consumer Confidence Falls