Discount grocers jump on home delivery bandwagon

Delivery rider Abdelaziz Abdou sets off with a bag of Aldi groceries. Discount supermarket chains in the US and Europe are stepping up home delivery. (Reuters)
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Updated 19 June 2020
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Discount grocers jump on home delivery bandwagon

  • Discounters focus on online market as pandemic accelerates digital revolution

BERLIN: Discount supermarket chains Aldi and Lidl look poised to accelerate their push into home delivery to satisfy burgeoning demand for online grocery shopping in a shift expected to endure beyond the coronavirus crisis.

Before the COVID-19 pandemic the German duo had grown at breakneck speed, most notably in the US and Britain. However, the rise in their market share has since stalled in Britain and slipped in Germany and France.

From the start of coronavirus lockdowns, they have been losing out to larger supermarkets as consumers make fewer shopping trips and opt for stores offering a wider choice and more branded goods, data from research companies Kantar and Nielsen shows. Home delivery and curbside pick-up services, meanwhile, are attracting many older customers for the first time.

That shift is prompting the discounters to focus their attention on previously tentative online efforts despite a long-held conviction that the high cost of delivering fresh food makes it incompatible with a business model reliant on low prices and minimal service.

“The coronavirus outbreak is likely to accelerate the digital transformation,” said Maxime Delacour, analyst at retail research group IGD.

“We’re expecting to see many more e-commerce developments from both retailers in the immediate future.”

HIGHLIGHTS

  • Aldi and Lidl have been e-commerce laggards.
  • Rivals’ online food sales boosted by pandemic.
  • Online demand remains high as lockdowns ease.
  • Aldi extends pilot projects in Britain and US.

The two family owned companies owe their success to the low prices they can offer because they keep running costs down by stocking a limited range of goods, boosting margins with a high proportion of own-label products and non-food special offers.

Aldi and Lidl have started to sell those higher-margin non-food ranges online in recent years, including the likes of garden furniture, clothing and even washing machines. But they have stopped short of delivering groceries in most of their biggest markets.

However, customers are starting to demand home delivery in countries such as Britain, where online penetration of the grocery market has almost doubled to 13 percent since the arrival of COVID-19, according to market researcher Nielsen.

“It would make my life much better if Aldi just started doing online shopping,” said Shannon Read, who launched a petition to urge Aldi UK to start home delivery when she was struggling to get hold of baby formula during Britain’s coronavirus lockdown.

Aldi last week said that it has extended a trial of home delivery in partnership with Deliveroo. If that goes well, industry insiders say the service could be rolled out more quickly than an in-house solution because Deliveroo is already well established.

The company has also said it will extend curbside pick-up to 600 of its 2,000 US stores by the end of July. It already offers US home delivery nationwide through Instacart.

“Our curbside grocery pick-up pilot was quickly embraced by our customers and demand for this service has continued to increase,” Jason Hart, CEO of Aldi in the US, said in a statement.

Lidl, which opened its first US stores in 2017, works with Shipt for home delivery there. It also signed up delivery partners in Spain and Ireland last year.

In Poland, Lidl has started testing a click-and-collect service at one of its stores, which should help customers to avoid social contact during the pandemic and limit waiting times.

The cost of offering click-and-collect is lower than home delivery, while working with partners such as Deliveroo and Instacart helps the discounters to minimize investment in extra technology, logistics and transport.

The pandemic has also helped the economics of online grocery shopping. A broader customer base has reduced logistics costs because delivery vans can drop more orders in one area, while average orders have also jumped, almost doubling at Britain’s Ocado.

That sales boom looks likely to persist even after the crisis, given that e-commerce demand remains at elevated levels as lockdowns ease in the US, Italy, France and Spain, according to data from analytics company IRI.


King Abdulaziz Airport among world’s busiest after record-breaking 2025

Updated 02 January 2026
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King Abdulaziz Airport among world’s busiest after record-breaking 2025

RIYADH: King Abdulaziz International Airport has achieved a new historical milestone, reaching 53.4 million passengers in a single year.

This is the highest number ever recorded at a Saudi airport since the beginning of air travel in the Kingdom, placing it among the world’s mega airports in terms of passenger traffic, according to the Saudi Press Agency.

The airport handled a total of 310,000 flights and 60.4 million bags, representing a 12 percent increase compared to 2024. It also handled 9.57 million Zamzam water containers and 2,968 cargo flights. 

This achievement reflects the airport’s qualitative transformation and its position as a regional hub and national gateway connecting the Kingdom to the world. It also highlights its role in facilitating the movement of visitors and pilgrims, promoting tourism in line with the goals of Vision 2030, diversifying the economy, and providing a distinguished travel experience. 

For his part, CEO of Jeddah Airports Co. Mazen Johar, affirmed that reaching 53.4 million passengers confirms the airport’s high operational readiness and represents a pivotal milestone for moving to the next phase, in preparation for doubling this number, God willing, in the coming years. 

He pointed out that this national achievement would not have been possible without the grace of God Almighty, followed by the directives of the wise leadership and the continuous follow-up from the minister of transport and logistics, the president of the General Authority of Civil Aviation, and the CEO of Airports Holding Co. 

He explained that King Abdulaziz International Airport is strengthening its position as a major aviation hub in the region through expansions, increased capacity, and improved services, supporting the objectives of the aviation program and aligning with the goals of the Kingdom’s Vision 2030. 

The CEO of Jeddah Airports Co. expressed his gratitude to the partners in success from various government and private sectors for their fruitful cooperation through a collaborative work system that contributed to providing the best services.