Supermarkets in the UK are racing to give better deals to their customers as new research finds there’s a tight race to be crowned cheapest.
Comparing the cost of popular groceries across the biggest stores, consumer site Which? has revealed where shoppers can find the best prices in 2025.
Retaining the crown of cheapest supermarket in January was Aldi, managing once again to narrowly beat rival Lidl in the rankings. For a basket of 100 items, groceries at Aldi cost £185.83 on average across the month. For Lidl shoppers it was £186.59 – just 76p more.
The two German-owned retail giants continue to be in a league of their own, both offering prices nearly £20 cheaper on average than the next cheapest store, Asda.
However Which? also found that Asda has cut its pricing at the start of the year. The British supermarket says it has slashed the cost of over 4,000 products by an average of 25 per cent.
This offering has put the store back above Tesco in the rankings, even with Clubcard discount. In December, Asda came fifth in the Which? price rankings, also losing out to Sainsbury’s.
For a shop of 100 items in January, Asda costed £204.90 and Tesco £207.66 (with Clubcard). At Morrisons the price was £213.49 with More card, meaning the store also overtook Sainsbury’s which came in at £214.04 with Nectar and fell from fourth to sixth place.
Waitrose was the most expensive on average, with a shop of 100 itmes, totalling £242.91 on average – a difference of £57.08 compared to Aldi.
Reena Sewraz, Which? Retail Editor, said: “Our latest monthly analysis once again sees Aldi crowned as the UK’s cheapest supermarket, however, Lidl remains hot on its rival’s heels. Asda has also made up some ground after slipping back in our rankings in recent months.
“With people still feeling the effects of food inflation, they are likely looking to cut costs where they can. Our analysis shows that by switching supermarkets consumers could save up to 23%, highlighting the advantages of shopping around where possible.”
In positive news for shoppers, grocery inflation also began to slow down in January for the first time in six months. Easing from 3.7 per cent to 3.3, analysts at Kantar attribute a rise in supermarket promotions as a key cause of the relief.
Fraser McKevitt, the research group’s head of retail and consumer insight, said: “Supermarkets were dishing out the discounts this new year, and consumers responded. Spending on promotions rose year on year by £274m.”
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