Discount chain Aldi has been named the UK's cheapest supermarket for January 2025, surpassing rival Lidl by just 76p.
This recognition comes from Which?, the UK consumer champion, which compared the prices of 100 popular groceries from eight major supermarkets across the country.
The consumer watchdog conducted a thorough price check on a mix of branded and own-brand items, including household staples such as sliced bread, milk and cheese.
Aldi emerged as the most affordable option with an average basket price of £185.83 ($232.31), closely followed by Lidl at £186.59.
Both retailers outperformed the larger supermarkets, including Asda, Tesco (with Clubcard) and Sainsbury’s (with Nectar card discounts).
Asda, while not offering loyalty prices in the same manner as some of its competitors, ranked as the third cheapest supermarket on the list, with an average basket price of £204.90.
Tesco’s prices without a Clubcard came in cheaper than both Morrisons and Sainsbury’s, with the retailer showing a notable price advantage over Sainsbury’s, which had Nectar promotions on 26 items.
Tesco’s inclusion of Clubcard discounts on 18 items further narrowed the price gap but still could not beat Aldi’s consistently lower pricing.
Waitrose continued to be the most expensive supermarket, with an average price of £242.91 for the 100-item basket - £57.08, or 31%, more expensive than Aldi.
When a larger selection of 210 items, including more branded groceries, was analysed, Asda regained its position as the cheapest supermarket, with an average basket price of £518.90.
This marked a shift from Tesco Clubcard, which had held the top spot in recent months. Asda’s loyalty scheme also helped customers earn 95p cashback on average, adding further value for those participating in the Asda Rewards program.
Following Asda in the price rankings was Tesco Clubcard, which came in second, with Morrisons and Sainsbury’s close behind.
Waitrose remained the most costly option, with a total basket price of £592.34 -14% higher than Asda’s pricing.
The impact of loyalty card discounts varied depending on the size of the basket.
On the smaller list of items, loyalty cards resulted in minimal savings, with Lidl offering a negligible 0.02% discount.
With larger baskets, which included more branded items and a higher proportion of discounted products, savings were more substantial.
Sainsbury's loyalty discounts offered the greatest benefit at 7.04%, while Tesco’s Clubcard provided 6.07% savings, and Morrisons More card users saved 1.9%.
In January 2025, Aldi UK increased hourly wages for its store assistants across the UK, re-inforcing its status as Britain’s top-paying supermarket employer.