The competition among UK supermarkets has intensified in early 2025 as retailers slash prices to attract cost-conscious shoppers. New research from Which? and Birmingham Mail reveals that discount chains Aldi and Lidl continue to lead in affordability, but Asda has made significant moves to challenge their dominance.
With rising household expenses, consumers are increasingly seeking the best deals on groceries, prompting supermarkets to engage in aggressive pricing strategies.
Aldi Remains the Cheapest for a Full Grocery Shop
According to a Which? study comparing the cost of 100 grocery items across major UK supermarkets, Aldi remains the most affordable option. In January 2025, an average basket cost £185.83 at Aldi, while Lidl followed closely behind at £186.59.
These two discounters consistently offer lower prices than traditional chains such as Asda, Tesco, Sainsbury’s, and Morrisons.
The price gap becomes more apparent when compared to other retailers. Asda, the cheapest of the traditional supermarkets, charged £204.90 for the same items. Tesco shoppers with a Clubcard paid £207.66, while Morrisons’ loyalty scheme users spent £213.49.
At the other end of the scale, Waitrose remained the most expensive, with a total of £242.91, costing over £57 more than Aldi.
ASDA Overtakes Discounters for Essential Items
While Aldi and Lidl continue to dominate full grocery shop rankings, Asda has emerged as the cheapest for essential everyday products. A separate comparison of eight staple items, including milk, bread, coffee, teabags, butter, baked beans, chicken, and mince, found that Asda offered the lowest price at £12.57.
This positioned Asda ahead of Aldi (£12.65) and Lidl (£12.67), with Tesco being the most expensive at £13.28.
Asda has also cut the prices of over 4,000 products by an average of 25%, reinforcing its efforts to compete with discount retailers. The supermarket has reinstated its Rollback pricing strategy, aiming to attract more budget-conscious shoppers.
The Impact of Loyalty Schemes on Pricing
Supermarket loyalty schemes play a crucial role in determining where customers find the best value. Tesco’s Clubcard, Sainsbury’s Nectar, and Morrisons More all offer discounts on select products, potentially reducing the overall shopping bill.
However, these savings do not always compensate for the consistently lower base prices at Aldi and Lidl. For a larger grocery shop of 210 items, which includes branded goods often unavailable at discount stores, Asda was the cheapest option at £518.90.
Tesco, with Clubcard discounts, followed at £529.01, while Waitrose was again the most expensive at £592.34. After months of food price increases, grocery inflation slowed down to 3.3% in January, down from 3.7% in December.
Experts attribute this decline to an increase in supermarket promotions and price reductions. Shoppers have responded by spending £274 million more on discounted products, highlighting the importance of competitive pricing in consumer decision-making.
