Aldi has lost its title as the UK’s cheapest supermarket for the first time in almost two years. Lidl has taken the top spot after a fresh price analysis by a consumer group, which showed that Lidl’s average basket cost slightly less than Aldi’s. In July, a basket of 76 common grocery items cost 128.40 euros at Lidl compared to 129.25 euros at Aldi, a difference of just 85 pence.
Both Aldi and Lidl remain much cheaper than other big supermarkets. Tesco’s basket costs about 17 euros more than Lidl’s, while Waitrose is the most expensive. With an average basket costing 170.91 euros, around 40 euros more than Lidl’s.
The price comparison also found that Tesco’s prices with a loyalty card were cheaper than Sainsbury’s, but Morrisons did not outperform other competitors regardless of loyalty card use.
This shift in supermarket pricing occurs amid rising food inflation and ongoing cost-of-living pressures. Many consumers have changed their shopping habits, with research showing a significant number switched their regular supermarket brand and nearly half cut back on luxury or treat items while shopping. This pricing battle reflects supermarkets’ efforts to attract cost-conscious customers.
For larger grocery shops consisting of 192 branded products, Aldi and Lidl were not included because they stock fewer products. In this category, Asda was the cheapest supermarket, with an average cost of 474.12 euros, beating Tesco even when the latter’s Clubcard loyalty discount is applied.
Despite losing the cheapest title, Aldi remains committed to offering low prices. In 2022, Aldi’s UK chief executive, Giles Hurley, promised customers that Aldi would always aim to have the lowest grocery prices in the UK, no matter the circumstances. Hurley acknowledged that inflation affects all retailers, but Aldi works hard to protect customers from price increases by sourcing mainly from UK suppliers.
Aldi’s market position remains strong. Recently, Aldi overtook Morrisons to become the fourth-largest supermarket in the UK by market share, behind Tesco, Sainsbury’s and Asda. Aldi continues to invest in expanding stores and introducing premium own-label products, reflecting changing customer preferences as cost pressures ease for some shoppers.
Although Lidl has now edged past Aldi to become the UK’s cheapest supermarket, Aldi continues to be one of the leading discount grocers competing fiercely in the market. Shoppers can still save significantly by choosing Aldi or Lidl over other supermarkets. The competition is ongoing as supermarkets respond to inflation and changing shopping habits.
This price ranking is based on the latest July figures, and the supermarket pricing landscape may continue to shift as companies adjust their strategies to attract customers in challenging economic times.
