Aldi and Lidl will face fewer consequences of the Brexit in the United Kingdom their major British rivals, because they rely more on local products. This will benefit them, according to a Kantal Retail analysis.
Import will become more expensive
The hard discounters' rise on the British market has been going on for a while, and the Brexit may actually give them a boost, according to analysts. The British pound lost ground, meaning British supermarkets will have to pay more to get food items from the EU. Major chains import plenty of fresh food, while hard discounters decided to invest in good trade relations with local farmers. For instance, Aldi only sells British meat in its British stores.
Aldi and Lidl also have a limited product range, combined with a high-performance supply chain on a European scale, which give them additional advantages. Lidl also informed British trade paper The Grocer the Brexit will have no impact on its investment plans for the United Kingdom.