It’s an unrealistic number to justify the argument. Unless you consume for the sake of consuming, there’s no way anyone needs an offer that rich for routine usage.
Aldi and Lidl carry ~2-3k SKUs. A regular grocery will carry maybe 20k. In places where enough of these are built close to where people actually live you don’t ever need to touch the car for shopping. Small shopping centers (those that also have a something like a small book store) will add a few more thousands. A requirement of 250k SKUs in a 20min walking distance is going in the territory of once in a year or more purchases.
I think I drove to do groceries a handful of times in the last 10 years. I have multiple chains close enough that I can always walk, I can buy smaller batches and always have fresh food rather than a truckload to last a whole week but be stale by the end. Self checkouts and the abundance of stores means I have almost 0 wait time.
It can work but it has to be designed properly, and people need to change their habits a bit. Like not expecting hundreds of thousands of SKUs 10 min away at all times (which implies a huge store, so far from where people live).
I use to shop at Lidl. As you say, they carry a limited SKU assortment. But I have found it doesn't really matter. When I go to a grocery store that carries more variety, it feels exciting, but in the end it makes no difference. As long as I can get the essentials, I will manage. I don't need 20 types of hamburger dressing. I can make my own from first principles. I don't need 40 types of yoghurt. I buy can natural and eat with fresh fruit. And so on.
Lidl also has this interesting approach that they rotate some assortment. You can't find everything all the time. But once you realize that certain things periodically come back, you pick them up when they are in stock to make sure you have them at home. It is not as convenient, but if you make it a habit, it is a very minor disadvantage.