Lidl and Aldi are two German discount supermarket chains that have been expanding rapidly in Europe and the United States in recent years. Both companies are known for their low prices and no-frills approach to retailing.
But there are also some important differences between the two chains.
Lidl was founded in 1930 by Josef Schwarz, who began by selling groceries from a horse-drawn cart in the small town of Ludwigshafen, Germany. Schwarz opened his first self-named store in 1973, and the chain has since grown to more than 10,000 stores in 27 countries.
Lidl is headquartered in Neckarsulm, Germany.
Aldi, meanwhile, was founded by brothers Karl and Theo Albrecht in 1946, when they took over their mother’s grocery store in Essen, Germany. (The name Aldi is a combination of Albrecht Diskont.) The brothers split the company in 1960, with Karl Albrecht taking control of the Aldi Nord chain (which operates in northern Germany, as well as other countries including France, Spain, Denmark, and Australia) while Theo Albrecht ran the Aldi Sud chain (in southern Germany and other markets including the U.S.).
Today, there are more than 5,000 Aldi stores in 36 countries. The company is headquartered in Essen and Mülheim an der Ruhr, Germany.
Pricing
Lidl and Aldi both have a reputation for offering low prices on a wide range of items. The companies keep costs down by operating on slim margins (usually around 5%), avoiding features like loyalty programs or credit card acceptance that add to expenses, and keeping store sizes small (usually between 10,000 and 20,000 square feet).
Product Selection
Lidl stores typically carry about 2,500 SKUs (stock-keeping units), which is fewer than most traditional grocery stores but more than what you’ll find at most other discount chains. The focus is on “own brand” products (branded with the Lidl logo), with about 90% of items falling into that category.
That said, Lidl does sell some national brands (usually just one or two per product category), as well as a rotating selection of seasonal items.
Aldi’s product selection is even smaller than Lidl’s, with most stores carrying only about 1,400 SKUs at any given time. Like Lidl, Aldi focuses on its own private label products (branded with the “Aldi” name), but the company also has an exclusive partnership with national brands like Coca-Cola and PepsiCo for certain products.
Store Experience
Lidl stores are designed to be clean and bright with wide aisles and an uncluttered layout. The company strives to provide a “WOW” shopping experience with low prices on quality products. In recent years, Lidl has been investing heavily in remodeling its older stores to match this newer model.
Aldi’s store experience is similar to Lidl’s in many ways: simple layouts with wide aisles and an emphasis on low prices. But there are some important differences too.
For one thing, Aldi stores are usually smaller than Lidl stores (around 10-12 thousand square feet compared to Lidl’s average of 18 thousand square feet). And while Lidl stores typically have several checkout lanes open at once, Aldi uses a “single point of entry/exit” system where customers can enter the store through any door but must go through a single checkout lane to leave.
In conclusion, both Lidl & ALDI are known for their low pricing strategies but differ when it comes to product selection & style experience.
