Lidl UK online launch on the horizon | Progresiv
Lidl looks set to launch an ecommerce service in the UK, according to The Grocer. The retailer is set to potentially partner with online logistics provider iForce, showing the discounter could be advancing with its online plans.
iForce has not commented on the potential deal. It currently works with Aldi, offering wine, spirits, coffee pods and bi-weekly launches of general merchandise 'Specialbuys'. iForce also works with Tesco and Waitrose.
In June Lidl said it was "actively exploring" ecommerce in the UK for the first time. This came a year after the retailer advertised for an ecommerce project manager and a junior project manager. It has been over a year since it created the holding company Lidl Digital Logistics. Since then there has been growing evidence the retailer is looking to expand into the online channel in the UK.
Lidl told The Grocer despite its plans it remains committed to bricks and mortar and its rapid estate expansion.
In the last two years we have seen Lidl significantly accelerate its ecommerce developments. Since 2018 it has started operations in USA, Belgium, Finland, Ireland, Italy, Poland, Spain and Slovakia. The UK remains the only major market with no online presence.
In most markets where it offers online food, Lidl partners with well-established online supermarkets, instead of managing the process itself. This is an efficient way to offer shoppers a new service, thanks to the limited investment required.
With online supermarkets managing orders and deliveries, Lidl doesn’t have to change its supply chain or invest in new facilities, as products will be picked in store. These partnerships also provide Lidl with a better understanding of shoppers, leading to potential improvements in its ranges and services.
Online is the fastest-growing grocery channel in the UK. However, the cost and complexity of ecommerce is not a natural fit for discount operators. As online shopping increasingly becomes the norm, discounters run the risk of losing out to competitors. In response to this we are increasingly seeing the discounters develop their online proposition, and expect this to continue in the future. (retailanalysis.igd.com)