For the first time in nearly two years, Aldi is no longer the UK’s cheapest supermarket, as revealed by the latest Which? price tracker. In a surprising turn of events, Lidl has edged out Aldi to claim the top spot, marking a major shift in the competitive landscape of UK supermarkets. However, there’s more to the story than meets the eye.
Lidl Takes the Lead – But With a Catch
Lidl has emerged as the new cheapest supermarket in the UK, but its victory largely hinges on the usage of its Lidl Plus loyalty app. According to the data for July 2025, Lidl’s average basket of 76 essential items cost £128.00 for those using the Lidl Plus scheme. Without it, the cost rises slightly to £128.40—still cheaper than Aldi, whose basket came in at £129.25.
This subtle difference is enough to dethrone Aldi, which had been the consistent leader in affordability since October 2023. The latest figures also underscore the growing influence of loyalty schemes on supermarket pricing, a trend that is reshaping the way UK consumers shop for groceries.
Aldi Falls Behind as Loyalty Cards Dominate
Unlike many of its competitors, Aldi does not currently offer a loyalty card, which puts it at a disadvantage in this increasingly discount-driven environment. Supermarkets like Tesco, Sainsbury’s, and Morrisons have integrated reward programs that significantly reduce costs for loyal customers.
In this latest study, Tesco Clubcard users saved 2.2% on smaller baskets and 6.3% on larger ones, while Sainsbury’s Nectar users enjoyed savings of 3.6% and 6.7%, respectively. Even Morrisons More cardholders saw slight price drops, making loyalty schemes a deciding factor in overall supermarket affordability.
Though Lidl Plus only shaved off 0.3% from the total cost, it was just enough to push Lidl ahead of Aldi—cementing Lidl’s position as the cheapest supermarket in the UK, at least for now.
Cost of Living and Inflation Add to the Pressure
The supermarket shake-up comes amid a backdrop of rising food inflation, which climbed to 5.2% in July 2025. Consumers are feeling the pinch, particularly when shopping for fresh meat, spreads, and chocolate, which have seen some of the highest price increases.
As inflation continues to burden household budgets, the smallest differences in pricing between supermarkets are becoming increasingly important. That makes Lidl’s strategic use of discounts through Lidl Plus a timely move in appealing to cost-conscious shoppers.
Larger Shops Still Favor Asda
Interestingly, when it comes to larger shopping baskets that include more branded products (192 items), Asda remains the cheapest option, with an average basket price of £474.12. Neither Aldi nor Lidl was included in this particular analysis due to limited availability of branded items. This suggests that while Aldi and Lidl dominate for everyday essentials, Asda still holds the crown for comprehensive weekly shops.
Are Loyalty Cards the Future of Budget Shopping?
The trend is clear: loyalty schemes are no longer just perks—they’re becoming necessities. Yet this trend raises important questions around accessibility. Many shoppers, particularly the elderly, digitally excluded, or those without fixed addresses, may struggle to access these savings.
Consumer watchdog Which? has raised concerns that these loyalty programs, while beneficial to some, create a digital divide in pricing that could disadvantage millions of UK residents.
What Does This Mean for Aldi?
The loss of its cheapest supermarket title may prompt Aldi to reconsider its pricing strategy or even introduce its own loyalty card to remain competitive. As budget-conscious shoppers continue to hunt for the best value, Aldi’s brand reputation as the most affordable option may face further challenges if it doesn’t adapt.
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