Aldi and Lidl save a lot of cost in the distribution chain by carrying dramatically fewer product lines/SKUs compared to the traditional stores. That means bigg

Aldi and Lidl save a lot of cost in the distribution chain by carrying dramatically fewer product lines/SKUs compared to the traditional stores. That means bigger volume discounts for them as a purchaser, less food being thrown away inedible, more ability to focus purchases in a particular subsector on higher margin lines and some efficiency gains at the till, which enables them to maintain a reputation for reasonably good quality. It's quite an interesting business model.