In a surprising shift in the UK grocery market, Aldi has lost its title as the cheapest supermarket, with rival Lidl narrowly overtaking it for the month of July, according to a fresh analysis by consumer group Which?.
For nearly two years, Aldi consistently topped the affordability rankings, becoming a favourite among price-conscious shoppers. However, July’s basket comparison revealed a small yet significant change in the race to offer the best value.
Lidl Becomes the Cheapest Supermarket in the UK
Which? compared the prices of 76 common grocery items — including both own-brand and branded goods — across all major UK supermarkets. Lidl emerged as the cheapest supermarket, with an average basket price of £128 using its loyalty card. Even without the loyalty card, Lidl still undercut Aldi, coming in at £128.40, while Aldi followed at £129.25.
Although the price difference between Lidl and Aldi is less than £1, it marks a turning point in the ongoing battle between the two discount giants.
The Bigger Picture: Grocery Price Gaps Widen
The report also highlighted how significant the price gap remains between the cheapest supermarkets and the more premium chains. Waitrose, for instance, came in as the most expensive supermarket with an average basket price of £170.91 — over £40 more than Lidl.
Tesco and Sainsbury’s fell somewhere in the middle, with loyalty card savings helping reduce prices but still failing to match the discount chains. Notably, Morrisons struggled to compete, showing minimal savings with or without a loyalty card.
Consumer Habits Shift Amid Ongoing Cost of Living Crisis
With food inflation and the rising cost of living still impacting UK households, where people shop has become a more strategic decision than ever before. According to Which?, 37% of consumers changed their regular supermarket in the last year, while nearly half (45%) cut down on treats and luxury items to make ends meet.
Retail experts believe the continued supermarket price war is not only influencing buyer behaviour but also putting pressure on stores to keep slashing prices wherever possible. Reena Sewraz, retail editor at Which?, emphasized that “simply choosing one supermarket over another could save you 25%,” encouraging shoppers to stay vigilant and price-aware.
Bigger Basket Analysis Excludes Discount Chains
In a secondary analysis of 192 branded products — a much larger basket — Lidl and Aldi were excluded due to limited stock variety. Among the traditional big chains, Asda emerged as the cheapest, with a total cost of £474.12. Again, Waitrose topped the list as the most expensive, clocking in at £538.33 — about 14% higher than Asda.
Aldi Still in the Running, But Competition Heats Up
While Aldi may have lost its cheapest supermarket title for now, the margins remain tight. With a difference of less than £1, it’s likely that the rivalry between Aldi and Lidl will continue to intensify in the months ahead.
Price-conscious consumers will no doubt be watching closely as promotions, loyalty schemes, and shopping habits evolve. For now, Lidl wears the crown, but the race is far from over.
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