Shopping - End of collecting goods and cash registers: Aldi tests picks-up stations for the first time
After discount chain Aldi Süd, following in the footsteps of supermarket chain Rewe, has started operating some pick-up vending machines to test their function and gain insights into changed customer demand. The testing, which began in mid-July, is reportedly time- and region-limited, according to the company. The "Lebensmittel Zeitung" previously reported on this.
One machine is located in Düsseldorf, and two are in Mülheim an der Ruhr. For the discount giant with approximately 2,000 stores in Germany, this is an innovative niche project that could provide a better understanding of new shopping behavior in the age of online shopping. Another example is delivery services: Aldi Süd has been testing such a service since the previous fall in a similarly limited version. Competitor Rewe has been doing this on a larger scale for some time. In addition, Rewe is experimenting with pick-up machines.
How the Aldi pick-up machine works
Customers who order online through the mein-aldi.de website or the associated app can pick up their goods the next day or up to five working days later – pick-up on the day of purchase is not possible. The container, which is about seven meters long, three meters wide, and three and a half meters high, is refrigerated, allowing for the purchase of fresh and frozen goods. Customers who order cleaning supplies will even receive them pre-chilled. The product range is smaller than that offered in the store.
Upon completing an online purchase, the consumer receives a QR code. This code is scanned at the machine, which then opens a glass door and presents a paper bag along with the purchased items. The pick-up is not available around the clock but only within a specific time window – in Düsseldorf, pick-up must be between 3:15 PM and 9 PM. The minimum order value is €20, and an additional fee for the machine is not mentioned. The container, which holds the goods, is located directly next to a regular Aldi store on a parking lot.
Rewe enters the fray
The machine is part of the so-called Click & Collect system. Customers order online and pick up their items later. This saves time spent waiting in line at the cash register and searching through the store aisles.
Competitor Rewe places significant emphasis on Click & Collect, with the option available in one out of every two stores in its 1,800-location chain in Germany. However, in most cases, customers must go to a specific area of the store to pick up their orders from an employee. Pick-up machines, which do not require human interaction, are being used by Rewe nationwide in only 16 locations. These can be used around the clock, and most of them are in Cologne and Berlin.
"These stations are another offering to give customers more flexibility in shopping," says a Rewe spokesperson. "Especially in inner cities, where there is not enough space for a REWE market with a pick-up service, the format of pick-up stations is appealing." Rewe has no major expansion plans for its automated presence: "We prefer the expansion of the stationary pick-up services in the market," the supermarket chain states.
Experts voice concerns
Marketing experts expressed reservations about the economic potential of this offering. "The machine must be expensive, as it is refrigerated and requires electricity," says Marketing Professor Martin Fassnacht from the WHU - Otto Beisheim School of Management.
Economically, it makes little sense in light of relatively high storage costs, as well as the potential for fewer impulse purchases: "People no longer go to the stores and no longer buy spontaneously." While there are spontaneous purchases on the internet that benefit online retailers, these may not matter much to discount store Aldi.
In general, pick-up automats in retail have the advantage that consumers are no longer bound by opening hours and can shop around the clock. This works well for retail giants like Amazon with its "Locker" automats. However, in the food retail sector, opening hours are already quite extensive, so most customers should not be annoyed by closed stores. "Some supermarkets are open until midnight, while others start selling early in the morning."
Advantage of constant availability
For a few people, it could still be an advantage to come to groceries in the middle of the night, according to Fassnacht – this should be the case with the 24-hour open Rewe automats, for example. The three containers of Aldi Süd are only available to customers during the opening hours of the adjacent store. "This way, the discounter is leaving the only small advantage of its concept unused," says Fassnacht.
And what does the expert say about the aspect that consumers can save time by ordering groceries via pick-up automats and picking them up on the next day on their way home? "The time factor plays a minor role for consumers, as they usually do not have to wait long in stores," says Fassnacht. Supermarkets and discounters have also shortened waiting times through checkout automats.
The sister goes other ways
And how does it look in the other part of the Aldi universe? The sister company Aldi Nord is currently not getting involved with pick-up automats and other Click & Collect offers. A company spokesperson explains, "We want to make shopping as simple as possible for our customers. That's why we focus specifically on modernizing our stores and improving the shopping experience for our customers for a quick and easy shopping experience."
Aldi Nord, the sister company of Aldi Süd, has chosen a different approach, focusing on modernizing their stores and enhancing the shopping experience for customers instead of investing in pick-up machines or Click & Collect services.
IKEA, a prominent player in the retail industry, has also been exploring new avenues in Germany. Recently, they announced plans to open their first small-format store in North Rhine-Westphalia, demonstrating their commitment to meeting changing consumer demands in the region.
Despite Aldi Süd's experimentation with pick-up machines and delivery services, traditional retail giants like Rewe and ALDI continue to dominate the German retail landscape. Their extensive store networks and long-standing presence in the market have positioned them as significant players in the retail sector, even as digital platforms gain traction.
The success of click-and-collect services in various retail sectors, including food and non-food, has prompted questions about its impact on brick-and-mortar stores. Some experts suggest that while the format offers consumers convenience, it might lead to fewer impulse purchases and higher storage costs for retailers.
