Aldi remains UK's cheapest supermarket but loyalty price war heats up for Sainsbury's and Tesco, Which? reveals

Aldi has once again beaten Lidl to the title of cheapest supermarket of the month, Which? finds, as Sainsbury's with a Nectar card leapfrogged Tesco Clubcard for everyday essentials.

While Aldi retained its title as the UK’s cheapest supermarket for a list of 95 items (£163.34), the consumer champion’s data highlights a competitive grocery market where supermarkets are aggressively looking to poach budget-conscious shoppers.

Lidl narrowed the gap to a razor-thin margin according to Which?'s price analysis - just £1.58 more than Aldi with a total cost of £164.92. For shoppers using the Lidl Plus app, that gap shrank even further to a mere £1.45, with the total coming to £164.79 - less than a 1 per cent price difference separating the two discounters.

Meanwhile, Sainsbury’s offered a massive 27 loyalty discounts on Which?'s tracking list in June, allowing it to undercut Tesco's Clubcard pricing (£194.67) with a member total of £193.30. 

However, the sting in the tail remains for non-members: without a loyalty card, Sainsbury’s was one of the most expensive options at £203.83, beating only Ocado and Waitrose on price. 

Which? found Asda managed to hold onto fourth place at £190.39, remaining one of the cheapest supermarkets regardless of loyalty schemes. Morrisons (£198.53) also proved cheaper than the standard, non-loyalty prices of both Tesco (£200.63) and Sainsbury's. 

Waitrose was once again the most expensive supermarket, at £229.88 - a staggering 40.73 per cent more expensive than Aldi for the same items. Ocado was second dearest at £214.72 (31.46% pricier than Aldi).

The June tracking list of 95 items included a mix of own-brand and major branded goods, such as Birds Eye peas, Cathedral City cheddar and Kellogg's corn flakes.

This latest pricing analysis from Which? demonstrates that shoppers can make considerable savings on their groceries depending on where they buy their food.

Reena Sewraz, Which? Retail Editor, said:

"While inflation remains stable for now, many households will be worried about prices going up in the coming months.

"The discounters remain the cheapest supermarkets for everyday essentials, while at the larger supermarkets the massive gap between member and non-member prices shows that retailers are increasingly locking their best value away behind a digital wall.

"When walking into one supermarket over another  – or forgetting your loyalty card – can mean paying over 40 per cent more for basically the same everyday essentials, switching where you shop is still the fastest way to slash your weekly grocery bill."

ENDS

Notes to editors: 

Research:

Each month Which? compares how much supermarkets charge for a selection of groceries. This month it compared 95 items that were available across all eight supermarkets. The data is based on availability across supermarkets each month. This list is made up of some of the UK’s most popular groceries, based on industry data on sales value and availability. Which? includes special offers and loyalty discounts where they apply but not multibuys.

Because the main list of groceries remains unchanged from month to month, Which? never shares the full list of products with retailers as it wants to avoid any attempt to skew the results. Which? wants retailers to work to make groceries affordable across the depth and breadth of their available lines.

For the shop, 95 items were analysed, which included a mixture of own-brand and branded products. 

There were 27 products on loyalty discount at Sainsbury's, 17 at Tesco, 2 at Lidl and 1 at Morrisons.

Average price

Which? checks the prices of hundreds of grocery items at eight major supermarkets throughout the year, using an independent price comparison website. For each supermarket, Which? works out the average price of each item across the month, then adds those up to get each store’s average price.

The consumer champion’s shopping list comprises the country’s most popular and widely available groceries, based on extensive market analysis. It includes branded items as well as own-brand products such as potatoes and baked beans.

Own-brand items won’t be identical across supermarkets, but Which? has ensured everything compared is as similar as possible based on a number of factors, including quality and weight.

Loyalty pricing

Which? looked at loyalty pricing for Lidl, Tesco, Sainsbury's, Morrisons and Waitrose, but none of the items on the consumer champion's shopping list had a loyalty price at Waitrose this month.

Asda's Rewards scheme offers cashback on products with loyalty promotions. Which? hasn’t factored this into its main analysis because loyalty members don't receive a discount on the day and the cashback is only redeemable at Asda, within a limited period (up to nine months) and in increments of £1.

As there are restrictions on who can access loyalty prices, Which? will only award a cheapest supermarket endorsement to the retailer with the lowest prices that are available to all consumers.

Useful links:

Loyalty cards compared

How to spend less at the supermarket

Which? Food Inflation Tracker

About Which?

Which? is the UK’s consumer champion, empowering people to make confident choices and demand better. Through our research, investigations and product testing, we provide trusted insight and expert recommendations on the issues that matter most to consumers.

Fiercely independent, we put people over profit - shining a light on unfair practices, influencing policy and holding businesses to account to make life simpler, fairer and safer for everyone.

The information in this press release is for editorial use by journalists and media outlets only. Any business seeking to reproduce information in this release should contact the Which? Endorsement Scheme team at endorsementscheme@which.co.uk.