Aldi hit headlines after it announced it would be stocking the world’s most expensive cut of beef – a Wagyu ribeye – for just £7.29.
In a restaurant the steak would retail for about £90, so how can the supermarket sell to cheaply?
Aldi and Lidl’s cut prices are the result of limited products and low running costs.
While the big four supermarkets can have dozens of varieties baked beans or digestive biscuits they will have just one.
This cuts the cost of storage and transportation as well as meaning the retailers don’t need huge superstores with high running costs.
SUPERMARKET PRICE WAR
BARGAIN BEEF BONANZA
Release your inner Mary Berry!
Costs are kept low at every turn, with items often displayed on the pallets they arrived at store in – meaning less staff members are needed.
Even packaging is designed to make staff more efficient. Products will have multiple barcodes so they can scanned quicker.
Both supermarkets have sold luxury products – often for limited periods – to catch the interest of shoppers.
And, the supermarkets popularity is increasing.
While the big four supermarkets have held on to the majority of the market Aldi and Lidl have outstripped them in terms of growth.
Industry figures show annual sales at the German owned Aldi are rising by 35.9per cent a year, while rival Lidl is seeing a 22.7per cent surge in sales.
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