Shoppers turn to discount stores as finances are squeezed

As household finances are squeezed, shoppers are turning to discount stores such as Aldi and Lidl.

In a satisfaction survey compiled by consumer campaign group, Which?, the two stores were placed well ahead of the big 4 supermarkets who include Asda, Morrisons, Sainsbury’s and Tesco.

German-owned chains, Aldi and Lidl, offer a no-frills approach which is even appealing to the wealthy. Both stores spend virtually nothing on displaying their goods, operate with low staffing levels and make customers pay for carrier bags.

Their ‘pile it high and sell it cheap’ philosophy is similar to the approach which led to the success of Tesco. Karl Albrecht, Aldi’s founder, has profited greatly and is one of the world’s richest men.

In the survey, Lidl came joint 6th among High Street stores while Aldi was in 9th place. Further down the list in 37th place was Tesco and Asda while Morrisons was 46th and Sainsbury’s 49th.

The big 4 supermarkets were also ranked below discounters Netto in 8th place and Iceland which was in 16th place.

Furthermore, Aldi’s product range has won many quality awards, beating the own-label foods of bigger supermarkets. Like Lidl, the chain operates from cheaper sites on the borders of major shopping districts.

In first place was upmarket chain Waitrose with the John Lewis department stores, which are part of the same group, in second place.

Lidl, part of the Schwartz Group, has 400 UK outlets and is believed to have ambitious expansion plans.

At the bottom of the table were JD Sports, JJB Sports, Woolworths, Currysdigital, Somerfield and PC World.

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