The Student Room Group

Why is LIDL so cheap?

Yeah why?

And also why doesn't everybody shop there? It's soo cheap. it's totally worth the shame.

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Reply 1
Due to the small number of brands that businesses like Lidl and Aldi provide, this makes it cheaper for them to supply these goods because of lower transportation costs.
Also, as they have fewer suppliers for their businesses, they may be able to obtain higher economics of scale for their orders, and therefore sell them at cheaper prices.

Not everybody shops there because of many reasons: branding, few choices of brands, quality etc.
Reply 2
There was something on the TV a few years ago as to why they (LIDL/ALDI) are cheep, and this is what I think they said. It was something to do with the stock choice. They have 1 maybe 2 options on most things. For example, spaghetti. In ALDI/LIDL they have 1 brand or spaghetti, where as in tesco they have 6/7/8 brands. If you thing about all of the space this takes up, if you do the same thing for every product, it takes up a lot of room. Room which you have to heat, light, furnish and staff.

Its all about giving you what you need rather than too many options. I personally find it easier to shop in places like ALDI and LIDL as you can get in and out in so much less time. You need pasta, you pick it up, where as in somewhere like tesco, you have to find it, then choose which one you want, a problem you don't have it there is just 1 option.
Reply 3
adding to quality.
The last time I visited LIDL most of their biscuits had quite a bit of trans fats which aren't good.
The brands aren't well known, offsourced suppliers.
Stack it high sell it cheap.
Reply 5
Original post by kaying
Due to the small number of brands that businesses like Lidl and Aldi provide, this makes it cheaper for them to supply these goods because of lower transportation costs.
Also, as they have fewer suppliers for their businesses, they may be able to obtain higher economics of scale for their orders, and therefore sell them at cheaper prices.

Not everybody shops there because of many reasons: branding, few choices of brands, quality etc.



Original post by superturtle
There was something on the TV a few years ago as to why they (LIDL/ALDI) are cheep, and this is what I think they said. It was something to do with the stock choice. They have 1 maybe 2 options on most things. For example, spaghetti. In ALDI/LIDL they have 1 brand or spaghetti, where as in tesco they have 6/7/8 brands. If you thing about all of the space this takes up, if you do the same thing for every product, it takes up a lot of room. Room which you have to heat, light, furnish and staff.

Its all about giving you what you need rather than too many options. I personally find it easier to shop in places like ALDI and LIDL as you can get in and out in so much less time. You need pasta, you pick it up, where as in somewhere like tesco, you have to find it, then choose which one you want, a problem you don't have it there is just 1 option.


I see. Thanks very much for explaining it to me :smile:
Original post by darkfang77
adding to quality.
The last time I visited LIDL most of their biscuits had quite a bit of trans fats which aren't good.
The brands aren't well known, offsourced suppliers.


All of their biscuits are their own brand, and in regards to the transfats I think you're referring to the "American Style" items which they sell.
they buy extra stock that are just 'lying around' at a discount
Reply 8
They have good buyers, they know where to source the cheapest stuff and they put lower markups on it like tescos or asda would do.
Stores are generally pretty basic affairs and they don't need to overspend on advertising.

It's all about cost reduction and offering a cheap, no frills, no excuses made for how dodgey the food is kind of service.
You can find bargains though, the german and polish stuff is quite good. Some of the cheap wheat beer I tried is also pretty nice.
(edited 12 years ago)
Reply 9
Original post by TheBritishBloke
All of their biscuits are their own brand, and in regards to the transfats I think you're referring to the "American Style" items which they sell.


No, it was an italian brand, primary lang italian, second french, 3rd deutsch, 4th english. Nowhere was LIDL written on it, and I THINK it was marketed as a tea-biscuit kind of thing, hard to remember as it was well over a year ago.

Reason I bought it was because it was something like £1.50 for 750g. It tasted quite nice however, a little soft but passable.
Stack high sell cheap....
It's basic and simple, they only have a few brands for each different product. Giving exclusivity to certain items means that get more for their money in terms of stock.
love lidl.. 2 litres of 7.5 percent cider for 2 pounds.. canny beat it!
Original post by kaying
Due to the small number of brands that businesses like Lidl and Aldi provide, this makes it cheaper for them to supply these goods because of lower transportation costs.
Also, as they have fewer suppliers for their businesses, they may be able to obtain higher economics of scale for their orders, and therefore sell them at cheaper prices.

Not everybody shops there because of many reasons: branding, few choices of brands, quality etc.


Then why isn't marks and spencers cheap :s-smilie:
I am very careful about what I buy in lidls, though you can get some great stuff. I never buy the cheese there, 'greek style' cheese doesn't sound so appealing, nor does cheddar dyed orange. The fruit and veg there however is often better than the stuff on offer at tesco, asda etc. The oranges are often sweet, the chocolate is hit and miss though their white chocolate is amazing. The bakery is very good, cinnamon whirls, fresh bread and croissants, very cheap. :smile: Some people pay £3.99 for sundried tomatoes and antipasti, I pay £1.69 or less in Lidls.
Also they sell everything on pallets don't have many shelves that need stacking they also don't employ as many staff.
Original post by lizfairy
Then why isn't marks and spencers cheap :s-smilie:


M&S stores are usually in prime locations, usually right in the middle of the high street. They also spend a ridiculous amount on advertising (as I'm sure you've seen), celebrity endorsements etc.

Most importantly though they can charge more because of their reputation and good will. The know people will shop there even though it's expensive as that's the part of the market they occupy.
It's mostly imported (mainly German) products bought in a 'pile 'em high, sell 'em cheap' fashion. Some good bargains to be had but I wouldn't do my weekly shop there.
Reply 17
Has a lot to do with their purchasing and paymaster policy........ they buy very few variations of stock and if they could they will dangle the carrot of cash-upfront policy or payment either on delivery or very soon after delivery like within hours, this usually nets them a very good wholesale price. Also markups by policy tend to be lower because their model is low margin but very high volume, hence why Wal-mart got slaughtered big time when they went into the German market.

Typical German business model.
(edited 12 years ago)
Original post by lizfairy
Then why isn't marks and spencers cheap :s-smilie:


Marks and Spencers are all about selling the quality and luxe reputation, and I reckon they must spend a fortune on advertising.
Before people say quality they should try it first! When i want frozen pizzas i get 2 there for £2, a lot better quality to the goodfellas ones too (they actually taste like pizza for one!)

Also, you should hear a certain member who posts in the food and drink forum go on about nougat pillows :coma:

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