Aldi has retained its position as the UK’s cheapest supermarket for the seventh consecutive month, according to new analysis by consumer group Which?. The findings reveal that a standard basket of 93 everyday items costs significantly less at Aldi compared to other major retailers, particularly Waitrose, which was identified as the most expensive supermarket in the country. The cost of the basket at Aldi was £158.05 in July, while at Waitrose it reached £226.95, a difference of £68.90. Lidl, Aldi’s closest rival, came in slightly higher at £160.75. The Which? comparison includes both branded and own-label products, such as milk, bread, beans, potatoes, and cheese. To prevent stores from manipulating prices solely to appear cheaper in the rankings, the exact composition of the basket is kept confidential. The results show that Asda, Sainsbury’s, and Tesco occupy positions two through four respectively, with minimal differences in price, under £3 between each. However, the use of loyalty cards can significantly affect the final cost. For example, Sainsbury’s Nectar card and Tesco’s Clubcard offer discounts that can reduce overall spending by up to £10, depending on usage. Without these cards, the cost at Sainsbury’s and Tesco increases substantially. Morrisons, which typically offers lower prices than Tesco and Sainsbury’s when loyalty cards are not used, becomes more expensive when they are. Meanwhile, Ocado and Waitrose remain the priciest options even after accounting for loyalty benefits. In the case of branded-only shopping, which excludes Aldi and Lidl, the rankings differ. In June, Asda was the cheapest option, while Sainsbury’s was the most expensive if a Nectar card was not used. The gap was more than 15 per cent, but this narrowed to just 3.74 per cent when the card was applied. The data highlights how loyalty schemes can influence consumer spending patterns. Which? reports that using a loyalty card can lead to savings of up to five per cent on monthly grocery bills. However, many shoppers are unable to take advantage of these programs due to barriers such as lack of digital access, absence of a fixed UK address, or age restrictions. This exclusion means some individuals miss out on potential savings, compounding the financial strain caused by rising prices. Inflation continues to drive up grocery costs, with Which? noting that the average household spent £5,530 on food and drink over the 12 months ending in July 2026. This represents an increase of £156 compared to the same period in the previous year. The figures underscore the ongoing challenge faced by British consumers navigating a high-cost environment, where even small differences in pricing can have a noticeable impact on budgets. The rankings also reflect broader trends in retail competition. While Aldi and Lidl continue to dominate the budget sector, traditional supermarkets like Asda, Sainsbury’s, and Tesco are vying for market share through loyalty incentives and competitive pricing strategies. Morrisons, meanwhile, occupies a middle ground, offering relatively low prices outside of loyalty schemes but becoming more costly when discounts are applied. Consumers looking to minimize expenses often turn to loyalty cards, but the effectiveness of these programs varies. For instance, without a Nectar card, Sainsbury’s prices were more than 14 per cent higher than Asda’s in the branded-only category. Similarly, Tesco’s prices rose sharply without a Clubcard. These discrepancies highlight the importance of understanding how different retailers structure their discounting policies. The latest Which? survey provides valuable insights into the evolving landscape of UK grocery retail. With inflation persistently high and living costs climbing, the ability to secure the best deals remains crucial for households managing tight budgets. Retailers must balance affordability with profitability, ensuring that their pricing strategies meet consumer expectations while maintaining sustainable business models.
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