@Zog Re: More neutral language please
Wow. Trying to be politically correct?
Zog, Aldi and Lidl have marketed themselves as discounters. Its their business model.
The truth is that many corporations have latched on to the term 'Big Data' and have yet to truly understand how to use it, or when best to use it.
To use the example of pricing. Amazon doesn't have a physical storefront. The price displayed could be calculated on the fly whereas in a supermarket, you would need to spend $$$ to upgrade the store shelves and the registers to do this. Yes it can be done and the technology is pretty straight forward.
Yet, here's the rub.
What do you buy on Amazon and what do you buy in the supermarket?
Big difference in terms of price margins and when it gets down to price optimization... it doesn't work in the grocery store....
Here's why.
In your neighborhood, there are at least 2-3 grocery chains close to you that you have a choice as to where to shop. You most likely shop regularly at two of the three if not all of the stores based on quality of product, choice of products and convenience. So if your favorite cans of beans is 5p lower at tescos but you're close to Sainsburys, are you going to go to Tesco to save 5p a can?
The issue is that the grocery business is low margins, high traffic. Not a lot of wiggle room. For most of the products, the price optimization within the margins where a store will make money is too small to sway the average consumer.
When you start to put certain products on sale to get customers in to the door, your competitors may match the price (potentially losing money) and will counter with other products where they have better margins or deals with manufacturers and will force you to match and you potentially lose money.
Amazon doesn't sell products that have that small a margin. They aren't selling perishables and shipping direct from manufacturer on some products, they can reduce their holding costs. (Again holding perishables cost more because usually they have to be refrigerated or frozen.)
There's more, but in general the cost of trying to optimize prices is going to exceed any tangible benefits.
Aldi's does their discounting, but its more 'old school' and its much simpler math. You can bet your bottom dollar that when they do run a special on product X, its because they got a deal on product X and have some wiggle room.