Re: More neutral language please
Where does Aldi and Lidl's ability to discount further than the big guys come from? Some of it is obviously store location, store fittings, and minimal headcount, but where does the rest come from?
Limited range: to take an example, they sell two types of tinned tomatoes, in one size of each. As opposed to big/small/multipack, with/without basil/oregano, in basic/standard/premium ranges, alongside a dozen branded equivalents. And they sell the same tomatoes at all their stores across Europe. So the volume they buy of either of their two options is massively greater than Tesco achieve with any one of their several dozen options.
Small stores: if you only stock 2,000 items, you need a fraction of the floor size of a supermarket that stocks 20,000.
No frills: simple store layouts and fittings, shelf-ready product packaging, small number of hard-working staff rather than hordes of kids chatting with their mates.
Limited time specialities: they don't stock lobster all year, just maybe twice for a week or so. Then they move onto pheasant (say). So they make large buys of speciality products infrequently, rather than clog up their shelves with slow-moving ranges all year.
These guys aren't stupid - they've got a very carefully thought-through business model, and any conventional supermarket trying to compete with them just on price is going to suffer.