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Aldi UK accelerates online push with ramp-up of Deliveroo trial

Fri, 20th Nov 2020 00:01

* Deliveroo trial expanded to almost 130 Aldi stores

* Aldi also expanding click and collect trial

* Aldi has lost market share during pandemic

By James Davey

LONDON, Nov 20 (Reuters) - Aldi UK, the British
arm of the German supermarket discounter, is stepping-up its
push into groceries home delivery by expanding a trial with
Deliveroo to almost 130 stores, it said on Friday.

Britain's fifth-largest supermarket group, with 900 stores
and a 7.8% market share, has been slow to offer online services
in comparison to rivals but has been developing its channels to
customers during the COVID-19 pandemic.

In April it started selling online food parcels to help
self-isolating and vulnerable customers during the crisis and a
month later started the rapid delivery trial in partnership with
Deliveroo.

Also last week it said it would extend a trial of a click
and collect service by up to an additional 200 stores by
Christmas.

Online grocery shopping has doubled its share of the UK
market to around 14% since the start of the pandemic and online
pioneer Ocado reckons it could reach 30% over the next
few years.

Aldi customers can choose from around 400 items on the
Deliveroo app. Products are then picked and packed by Aldi staff
before being delivered by Deliveroo riders in as little as 20
minutes.

Delivery via Deliveroo costs 4.99 pounds, including a 49
pence platform fee.

“We’re finding customers really value having more ways to
shop at Aldi, particularly at the moment," Aldi said.

Aldi enjoyed over a decade of strong growth on the back of
new store openings but its market share has edged lower during
the pandemic, partly because of its lack of a significant online
offer.

In September, the group said it was investing 1.3 billion
pounds ($1.7 billion) over the next two years, including in
opening 100 new stores.

Deliveroo, 16% of which is owned by Amazon, is also
working with the Co-operative Group, Waitrose
, Sainsbury's and Morrisons.
($1 = 0.7557 pounds)
(Reporting by James Davey; Editing by Kirsten Donovan)

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