In recent years, Aldi and Lidl have captured the hearts—and wallets—of millions of British shoppers. Their lean model, efficient operations, and unbeatable value have shaken the foundations of the UK’s traditional supermarket giants. Yet despite years of trying, the likes of Tesco, Sainsbury’s and Asda still struggle to compete on the same terms. Why? Because practically, it’s near impossible.
Here’s why the Big Three simply cannot follow the Aldi-Lidl playbook.
1. They Are Too Big to Pivot Quickly
Tesco, Sainsbury’s and Asda operate enormous, complex retail machines. With hundreds of superstores, convenience outlets, and online arms, every strategic move requires time, alignment across departments, and operational risk assessments.
Aldi and Lidl, by contrast, thrive on simplicity. Their store formats are smaller, standardised, and efficient. Decisions are centralised and can be implemented rapidly across the network. While Tesco and Sainsbury’s must consider shareholder expectations, legacy systems, and union agreements, Aldi and Lidl focus almost entirely on price, product, and performance.
Conclusion: Flexibility is Aldi and Lidl’s advantage. Scale is the Big Three’s burden.
2. Overheads Are Too High
Running a traditional supermarket chain is expensive. From elaborate store layouts and extensive product ranges to larger staff teams and in-house bakeries, the Big Three carry massive operating costs.
Aldi and Lidl run a stripped-down model: fewer staff per store, tight product range (typically 1,800–2,000 SKUs vs 20,000+ at a Tesco Extra), and no frills. Their efficiency allows them to pass savings directly to customers.
Tesco or Asda slashing costs to this degree would mean fundamentally dismantling their customer promise, loyalty schemes, and the shopper experience they’ve built over decades.
Conclusion: High fixed costs and customer expectations make a true transformation unviable.
3. Supply Chain Models Are Worlds Apart
Aldi and Lidl use a centralised, direct-to-store distribution model with fewer suppliers and a heavy emphasis on own-label products. Their products often come in pre-packed, shelf-ready formats, reducing labour and waste.
In contrast, Tesco and Sainsbury’s work with thousands of suppliers, balancing branded goods with own-label, managing promotions, and running complex just-in-time systems. Their networks must cater to everything from small Express stores to sprawling hypermarkets. Streamlining this into an Aldi-like model would require complete infrastructure overhaul—both logistically and culturally.
Conclusion: The Big Three are built for variety and volume. Aldi and Lidl are built for consistency and control.
4. Customer Expectations Are Different
Aldi and Lidl built their reputations on simplicity and value. Shoppers go there expecting no loyalty cards, minimal customer service, and a quick in-and-out experience.
Tesco, Sainsbury’s and Asda have long sold themselves on a richer customer journey—Clubcard points, recipe inspiration, wide choice, seasonal events, and branded offers. Stripping this away would alienate core shoppers and dilute brand identity.
Conclusion: Aldi and Lidl own “discount.” The others must find a different value proposition.
5. They’ve Already Tried—and Failed—to Copy
It’s not that the Big Three haven’t tried. Tesco launched its discount chain Jack’s in 2018, only to shut it down in 2022. Sainsbury’s has made countless attempts to simplify pricing and product ranges. Asda has dabbled in Aldi price-matching.
But none of these efforts have shaken Aldi or Lidl’s dominance. The issue isn’t about copying—it’s about DNA. These German discounters are purpose-built for the model they operate. The traditional supermarkets simply are not.
Final Word: Compete Differently, Not the Same
Rather than imitating Aldi and Lidl, Britain’s supermarket giants may be better off focusing on what sets them apart: better service, broader ranges, convenience, and digital innovation. They must redefine what “value” means in their context—perhaps through loyalty ecosystems, seamless e-commerce, or sustainability leadership.
Trying to become Aldi or Lidl is a losing battle. Reinventing themselves on their own terms, however, is the path forward.