Aldi does not provide home delivery to customers due to their focus on keeping prices low by reducing operational costs.

The renowned supermarket chain, Aldi, has decided to take a different approach from its competitors, Woolworths and Coles, in the ongoing trend of online grocery shopping. According to the executives, offering such services would result in a price hike for their customers, ultimately going against their reputation as a discount grocery retailer. Since its establishment in Australia in 2000, Aldi has rapidly expanded to over 600 stores across the country, securing a market share of more than 10% in the supermarket industry.

During the hearings for the Australian Competition and Consumer Commission's inquiry into supermarket pricing practices, Jordan Lack, the managing director of buying for Aldi Australia, stated that implementing home delivery and click-and-collect services would be a costly change for the company. These services are favored by customers at Woolworths and Coles for their convenience and time-saving benefits. Lack further explained that after conducting a thorough evaluation, they found online shopping to be an expensive channel to serve. This is mainly due to the additional cost of employees picking the groceries instead of customers doing their own shopping.

Lack emphasized that such costs would eventually have to be borne by the consumers, which goes against their philosophy of offering low prices. He also mentioned that Aldi has a limited range of products, consisting of only about 1800 items, compared to the 25,000 products offered by its competitors. For instance, if a shopper wanted to buy raspberry jam, they would have seven options at Coles, eight at Woolworths, but only one at Aldi. This is because Aldi believes in keeping its product range concise to keep costs down and pass on the savings to its customers.

According to a spokesperson for the supermarket, Aldi is keeping a close eye on the eCommerce opportunity but is currently focused on keeping the prices of customers' weekly shopping as low as possible. During the inquiry, it was also revealed that Aldi's lower prices are a result of their smaller store sizes, fewer staff, and limited product range. Retail expert Gary Mortimer stated that having fewer choices and items allows Aldi to benefit from economies of scale, ultimately keeping their costs down.

The consumer watchdog also heard about Aldi's famous middle aisle, where customers can find a wide variety of non-grocery items such as snow gear and whipper snippers. It was revealed that this section is a money maker for the business. The final report on supermarket pricing is scheduled to be published in February, and Woolworths and Coles management will be facing the inquiry next week. In the meantime, customers can stay updated with the latest news and happenings through the 9News app available on the Apple App Store and Google Play.

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