German discount retailers Aldi and Lidl will benefit more from the Brexit than the rest of their competitors in the UK. According to a report by Kantar Worldpanel, both companies trust in local products more than their competitors, revistainforetail.com reports.
"There are many factors that will help Aldi and Lidl to absorb the inflation and prices increase...their limited variety, their leaner supply chains and more importantly, their scale economy", says the report.
The study indicates that in their attempt to position themselves as "legit" destinations for the weekly grocery shopping, Aldi and Lidl have "drastically" increased and improved their range of fresh products and now fruit and vegetables, meat, poultry and baked goods account for about 50 per cent of sakes.
"Currently, they [Aldi and Lidl] are more proactive in promoting the importance of provenance and local origin, which has taken Aldi to implement a policy of 100 per cent British fresh meat. This closeness with the farmers has located them in a stronger position than its rivals in the short term.
"Lidl will invest £1.5 billion in the next three years for the construction of new shops, remodelling of the existing ones and developing new product lines. It seems like these plans are going to be maintained and now with the decrease in the Pound's value, the [extra money] will be more effective."
The reports points out that not only are Aldi and Lidl the least affected, it is possible that they will be the only retailers to benefit in the short term.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Gabriela Guédez. To subscribe to ESM: The European Supermarket Magazine, click here.
