Ask the Collective

What margin do discount supermarkets like Lidl and Aldi typically offer compared to conventional supermarkets?

Discount supermarkets offer significantly lower margins than conventional supermarket channels. Members report: - **Lidl/Aldi margins**: typically 10–12% on spirits - **Conventional supermarkets**: usually 25%+ on standard products, rising to 30% on super-premium spirits - **Mixers**: notably tighter at 40–48% (members noted this with frustration) - **Ex-duty spirits**: may reach north of 50%, but this is category-dependent The consensus is that discount channels require accepting substantially lower margins (roughly half those of traditional supermarkets) in exchange for volume potential. One member noted they were checking feasibility ("just want to see if we can make it stack up"), suggesting profitability requires careful cost analysis before committing.