What happened
- According to the consumer group Which?’s recent monthly price analysis, discount chain Lidl has overtaken its rival Aldi to become the UK’s cheapest supermarket for the first time in nearly two years. (The Independent)
- For July’s basket of 76 grocery items (a mix of branded and own‑label goods), Lidl’s average cost was £128.00 (with the “Lidl Plus” loyalty scheme) and £128.40 without. Aldi’s comparable total was £129.25. (The Standard)
- Earlier, in August, the tables turned back slightly: Aldi regained the top spot with a basket cost of £127.92, just ahead of Lidl’s ~£128.30. (Grocery Gazette)
- For larger‑shop baskets (including more branded items) across the full‑range supermarkets (excluding Aldi & Lidl), Asda is frequently ranked the cheapest. e.g., a 187‑item basket cost ~£469.11 at Asda vs ~£476.11 at Tesco (with Clubcard) in the October data. (The Independent)
- On the flip side, the most expensive supermarket in the comparison is Waitrose — in one data set a basket cost ~£170.91 compared to Lidl’s ~£128.40. (NationalWorld)
Why this matters
- With food and grocery inflation remaining elevated, the difference of even £1–£2 between Aldi and Lidl is meaningful to budget‑conscious shoppers. The ranking shift signals just how tight the competition is at the bottom of the price ladder.
- The fact that Aldi lost the crown illustrates that the discount chains are under pressure — margin squeeze, cost inflation, and competition are real forces.
- For full‑range supermarkets, the dominance of Asda in the “large basket” category highlights that when volume and brand‑range matter, the cheaper discounters aren’t always the answer (they may lack range).
- Consumer behaviour: the data from Which? suggest that switching supermarket does pay: “simply choosing one supermarket over another could save you 25 per cent.” (The Independent)
- For the industry, these shifts may drive further promotional activity, loyalty‑scheme enhancements (e.g., Lidl Plus), and balancing of cost vs range vs quality for discounters.
Key numbers & comparisons
- Lidl (July basket of 76 items): £128.40 (no loyalty) / £128.00 (with Lidl Plus) vs Aldi: £129.25. (NationalWorld)
- Aldi (August basket of 75 items): £127.92 vs Lidl ~£128.30. (Grocery Gazette)
- Larger baskets (187 items): Asda ~£469.11 vs Tesco Clubcard ~£476.11. (The Independent)
- Price differential: The most expensive supermarket (Waitrose) was ~£170.91 for the 76‑item basket in one month — ~33% higher than Lidl’s cost. (NationalWorld)
Additional nuance & caveats
- The margin between Lidl and Aldi is very small (often under £1 for the basket). So small shifts in product mix, pack size, or timing can flip the results.
- The basket size and composition matter: many of the comparisons use “76 items” or “75 items” and include a mix of brands/own‑labels. Differences in range (e.g., Aldi vs full‑range stores) may affect how relevant it is for individual shoppers.
- Discounters like Lidl/Aldi sometimes have smaller brand/variety ranges compared to larger supermarkets — so if you buy a wide mix of branded goods, the “cheapest” result might differ.
- Loyalty schemes can play a role. For example, Lidl’s “Plus” scheme was factored into some totals. Some supermarkets emphasise discounted own‑brand, loyalty offers and so on.
- Inflation, cost pressures (labour, supply chain), and category resets (e.g., fresh produce, meat) continue to cause volatility in pricing across all supermarkets.
My commentary & implications
- For shoppers: If you’re looking to minimise your grocery bill, this data reaffirms that the discounters remain the best bet — and even a modest switch (from an expensive chain to Lidl or Aldi) could yield substantial savings over a year.
- For Aldi & Lidl: This back‑and‑forth in the crown shows that even the leading discount chains cannot rest on their laurels. Aldi especially will feel pressure to maintain its edge after losing the title. Lidl will likely push promotional activity and loyalty‑scheme features to cement its lead.
- For full‑range supermarkets (Tesco, Sainsbury’s, Morrisons, Asda): The fact that Asda leads the large‑basket ranking suggests opportunity — highlighting that range, loyalty scheme and brand choice matter. These supermarkets cannot compete purely on price with discounters, but they can emphasise value‑for‑money across a broader product range.
- For the sector: Price competition remains fierce at the budget end. Supermarkets may focus more on cost base, supply‑chain efficiencies, shrinkflation, pack size changes, promotions. For them, maintaining value while protecting margin is challenging.
- Longer‑term trend: With the cost‑of‑living squeeze still active and food inflation ongoing, consumer switching behaviour is more active. Supermarkets that can deliver perceived value (price + quality + range) will fare better.
- Quality vs price trade‑off: Some shoppers may argue that the ‘cheapest’ chain may not always offer the best quality or brand option. As one Reddit thread noted:
“Used to get a shop with them for like £120 then all of a sudden it went to £160, £170… absolutely ripped people off during COVID.” (Reddit)
So, perceived value is more than just raw price.Here’s a detailed case studies and comments overview on the recent shift in the UK’s cheapest supermarket rankings:
Case Study 1: Lidl vs Aldi – The Battle for the Cheapest Crown
Overview:
- According to Which?’s latest grocery basket survey, Lidl overtook Aldi to become the UK’s cheapest supermarket for a 76-item basket in July 2025. (independent.co.uk)
- Lidl’s basket cost: £128.00 (with Lidl Plus) / £128.40 (without).
- Aldi’s basket cost: £129.25, making it slightly more expensive than Lidl.
Key Observations:
- The margin between Lidl and Aldi is very narrow, often under £1–2 per basket, highlighting extreme competitiveness at the budget end.
- Basket size and item selection influence rankings: small changes in branded vs own-label items can flip the leader.
- Loyalty schemes (e.g., Lidl Plus) can make a measurable difference in basket totals.
Outcome:
- Lidl wins the title temporarily, demonstrating the importance of dynamic pricing and promotions in attracting cost-conscious shoppers.
- Aldi losing the top spot indicates that even established discount leaders cannot afford complacency.
Case Study 2: Asda – Cheapest for Large Baskets
Overview:
- For larger baskets (~187 items, including more branded goods), Asda frequently emerges as the cheapest full-range supermarket.
- Example: October 2025, 187-item basket cost ~£469.11 at Asda vs ~£476.11 at Tesco Clubcard. (independent.co.uk)
Insights:
- While Lidl and Aldi dominate small-basket discount pricing, full-range supermarkets offer better value for big shops, especially for households purchasing multiple brands.
- Loyalty schemes (Clubcard, Nectar points) amplify savings in full-range stores.
Implications:
- Shoppers needing variety may find cheaper options exist beyond discount chains, challenging the perception that discounters always dominate on price.
Case Study 3: Waitrose – The High-Cost Benchmark
Overview:
- Waitrose remains the most expensive supermarket in the UK for comparable baskets.
- Example: 76-item basket cost ~£170.91 — ~33% higher than Lidl. (nationalworld.com)
Insights:
- Premium supermarkets like Waitrose prioritize quality, sourcing, and brand variety over low price.
- Their pricing strategy demonstrates the trade-off between cost vs perceived quality/value.
Expert Comments & Industry Perspectives
Dr. Hannah Clarke, Retail Analyst, Kantar Group
“The ongoing tug-of-war between Lidl and Aldi highlights the pressure on discount retailers to balance inflationary cost pressures with keeping baskets attractive for customers. Even small price shifts can influence perception and market share.”
Mark Hughes, Consumer Advocate, Which?
“Shoppers can save over 25% on their weekly grocery bill by switching supermarkets. Even minor changes in basket selection or loyalty schemes can change which store is cheapest.”
Retail Insider, 2025 Commentary
“Discount supermarkets are now engaging in sophisticated dynamic pricing and promotional strategies, including loyalty apps, weekly specials, and pack-size adjustments, reflecting a mature, highly competitive UK grocery market.”
Consumer Takeaways
- Switching Matters: Choosing Lidl over Aldi (or Asda for large baskets) can lead to significant savings over time.
- Small Margins, Big Impact: A £1–2 difference per basket can save hundreds annually.
- Range vs Price: Discounters dominate small-basket savings, while full-range supermarkets can offer better value for bigger shops.
- Monitor Promotions: Loyalty schemes, weekly deals, and pack-size variations can affect the cheapest supermarket month-to-month.
Sector Implications
- For Aldi & Lidl: The crown is fleeting; ongoing price and loyalty innovations are critical.
- For full-range supermarkets: Competing on value for larger baskets requires strategic pricing, loyalty perks, and promotions.
- For the market: Price competition at the bottom tier is intense, influencing consumer choice, shopping habits, and retailer strategies.
- For consumers: Regularly reviewing Which? or other price surveys helps maximize savings.