Aldi has stopped delivering groceries to Irish households, in a sign that online grocery shopping may not pay for retailers.

The German discount retailer has bagged up its trial with Deliveroo, which allows customers to order goods for delivery.

The supermarket says it is instead focusing on click-and-collect services.

"We have decided to end our trial with Deliveroo to focus on our click-and-collect service, which remains on offer at 20 of our stores nationwide," Aldi says.

"At Aldi we are always open to change and innovation and take pride in responding quickly to changing customer preferences.

"Our focus is on expanding our Irish store network and bringing our unbeatable grocery prices to more people across the country."

File photo shows a Deliveroo rider in Dublin city centre. Picture by: Sam Boal/Rollingnews.ie

Online shopping accounted for 5.4% of total Irish grocery spend in the 12 weeks to April 4th, according to Kantar data.

That is twice what it was before the pandemic - but well below the equivalent figure in Britain, which is in excess of 10%.

The small size of the online market here, plus the commission that Deliveroo takes on orders made via its platform, may have factored into Aldi's decision to end the trial.

Last year Aldi Ireland group managing director Niall O'Connor told Breakfast Business that online grocery sales had been "reported as being very challenging in terms of making profitable".

Selling groceries online can come with significant costs for retailers.

Some - such as Tesco - have decided to invest in their own online ordering platforms and delivery infrastructure at significant expense.

Aldi made the decision to use Deliveroo's platform and delivery network instead, but had to hand over a cut of their sales in return.

Additional reporting: Jack Quann