One of the reasons the likes of Lidl and Aldi can charge less because they tend to occupy much smaller sites in poorer locations and offer far fewer ranges coupled with lower stock levels.
As regards the living wage:
Quote:
Sainsbury's responded by saying its benefits were comparable, because Lidl did not pay staff for time spent taking breaks.
It said that if breaks were included, one of its full-time employees on its new standard hourly rate of £7.36 would earn about £12 a week less than a Lidl employee on the new rate of £8.20.
In addition, Sainsbury's said it also gave staff bonuses amounting to £50m last year.
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http://www.bbc.co.uk/news/business-34281559
Furthermore from what I've seen of staff within the discounters we visit, they tend to be a lot busier and always leave the tills when shelves need to be filled or whatever. I know who I'd prefer to work for but I guess £12 a week is a lot of money to some people.