Lidl owner launching its own rival to Amazon Web Services

Lidl’s parent company Schwarz Group is taking on Amazon by launching its own cloud computing service for third party retailers.

Schwarz Group, which owns both Lidl and Kaufland, is launching its own rival to Amazon Web Services (AWS) following the recent acquisition of software specialist Camao IDC, according to Lebensmittel Zeitung.

The acquisition, which completed on May 1, brings 70 cloud specialists into the wider group representing key “resources in an important area of digitalisation”.

Its head of strategy and business management Stefan Herold, who took on the role in March, will head up the new cloud service, which is understood to have been accelerated due to the coronavirus crisis.

READ MORE: Lidl expected to launch UK online shop this year

While Schwarz IT intends to use Europe’s enhanced data protection laws as a key differentiator to Amazon’s dominant service, many have expressed concerns that AWS cash reserves and low prices could be major obstacles in securing clients.

In January, reports emerged that Lidl could launch an online delivery service here in the UK by the middle of the year.

In October that Lidl was advertising for digital managers for “exciting new ecommerce projects”, while its UK digital director Alex Murray alluded to online plans at an industry conference in March 2018.

That same year Lidl launched Lidl Digital Logistics Great Britain Ltd, adding further weight to speculation a UK launch could be close by.

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