Aldi Dethroned: Who Is Now UK's Cheapest Supermarket?

For the first time since October 2023, the title of the UK's most affordable supermarket has shifted, with Lidl overtaking Aldi following a recent price comparison. Retail analysts stress that even small differences in prices can make a notable impact on household budgets.

Aldi supermarket is best known for its low prices and no-frills shopping experience, offering a wide range of products at discounted rates. The store focuses on efficiency and simplicity, often stocking private label brands that provide good quality at affordable prices. It is also recognised for its weekly special offers and seasonal promotions. However, recently they were dethroned from the position of 'cheapest supermarket in the UK'.

A consumer analysis by Which? revealed Lidl's total cost for a basket of 76 common grocery items in July was £128 (Approximately $167). This is marginally less than Aldi's figure of £129.25 (Approximately $169). The slight difference of less than £1 (Approximately $1.30) becomes more noticeable when loyalty cards are used, as Lidl's loyalty scheme offers additional savings.

The study considered both branded products and own-brand items, including staples such as bread, milk, cheese, and frozen vegetables. Lidl's position as the most cost-effective retailer ends Aldi's 20-month streak at the top of the affordability rankings. Despite this shift, both supermarkets remain significantly cheaper than larger rivals like Tesco and Waitrose.

Price Variations and Loyalty Program Impact

Lidl's price advantage was confirmed when factoring in special offers and loyalty discounts. With a Lidl Plus card, the total dropped to £127 (Approximately $166), while without membership, it was £128.40 (Approximately $168). For comparison, Tesco's basket cost £141.92 (Approximately $186) with Clubcard discounts, and £145.10 (Approximately $190) without. Sainsbury's Nectar cardholders paid £144.21 (Approximately $189), versus £149.55 (Approximately $196) for non-members.

Major supermarkets exhibited notable price differences based on membership status. For example, Asda's basket of 76 items was £139.53 (Approximately $183), and for an extended list of 192 products, Asda maintained its lead at £474.12 (Approximately $622). Conversely, Waitrose's larger trolley was the most expensive at £538.33 (Approximately $706), with smaller baskets costing £170.91 (Approximately $224), which is around 33% more than Lidl's.

The Role of Loyalty Schemes

The analysis also underscored how loyalty programmes can reduce shopping bills. Tesco's discounts on 16 items brought its total to £141.92, while Sainsbury's offered Nectar savings on 15 products, reducing their totals to £144.21. Lidl applied three loyalty discounts, and Morrisons provided two for their shoppers.

However, the study raised concerns over access to these discounts. Many consumers face hurdles such as age restrictions, digital literacy barriers, and the need for smartphones or specific addresses to qualify. These obstacles may prevent some households from fully benefiting from membership savings.

Impact of Food Price Inflation

Prices across the grocery sector have been rising steadily. Market data from Worldpanel by Numerator indicated a 5.2% increase in grocery costs over four weeks ending 13 July 2025. Categories like chocolate, spreads, and fresh meat saw the biggest jumps, while items such as dog food, sugar, and laundry products became cheaper.

The rising costs have prompted many households to reconsider their shopping habits. Recent surveys show over a third (37%) of shoppers changed their regular supermarket, and nearly half (45%) reduced their spending on treats and luxury items.
Small differences in cost can add up across a shopping basket, especially when loyalty discounts are factored in. As food inflation persists, consumers are encouraged to explore all available savings options and consider their eligibility for loyalty programmes.