Aldi retains UK cheapest supermarket title amid retail rivalry

Aldi has maintained its position as the UK’s cheapest supermarket for the eighth consecutive month, according to a Which? monthly comparison. In a test of 92 everyday branded and own-label products, Aldi’s basket averaged £159.36, narrowly beating Lidl, which averaged £161.10.

Traditional retailers are increasingly utilizing loyalty schemes to bridge the price gap with discounters. Sainsbury’s significantly narrowed its margin with Asda when its Nectar loyalty pricing was applied, reducing its basket cost from £195.33 to £185.55. Similarly, Tesco’s Clubcard provided notable discounts, reflecting a broader industry trend where supermarkets use targeted pricing to compete with budget brands.

Beyond price competition, the rivalry between Aldi and Lidl is expanding into physical territory. Both retailers have submitted planning applications to open new stores in the affluent Norfolk market town of Holt. The move has sparked local debate regarding whether budget brands are suitable for the historic town, though some residents argue the town lacks affordable grocery options.