Supermarket Rankings Show That Aldi Isn’t Always the Cheapest for Every Category!
- TBA
- Oct 3
- 4 min read
Do you know which supermarket is the cheapest in the UK?
Aldi has once again been named the cheapest UK supermarket for a standard basket of groceries.
However, according to the latest survey by consumer group Which?, Lidl briefly overtook Aldi last month, claiming the top spot as the UK’s cheapest supermarket for the first time since 2023.
However, the lead didn’t last long. Aldi quickly reclaimed its position as the cheapest supermarket, pushing Lidl back into second place.
Updated rankings
1. Aldi
Key feature: The undisputed price champion
Aldi has consistently topped the cheapest supermarket charts, focusing on own-brand goods and streamlined operations to keep costs down. It’s the go-to place for fresh produce and everyday essentials.
2. Lidl
Key feature: Aldi’s toughest competitor, known for its bakery
Lidl operates a similar discount model, with prices very close to Aldi’s. Its in-store bakery (bread, pastries, cakes) and weekly “middle aisle” specials are standout features.
3. Asda
Key feature: Best value among the big supermarket chains
Within the traditional ‘big four’ supermarket chains, Asda is the cheapest. It offers a much wider range than discount supermarkets, stocking both own-brand and major branded products, making it ideal for one-stop bulk shopping.
4. Tesco
Key feature: The most convenient supermarket, with loyalty cards at its core
Tesco has the largest store network, making it the easiest to access. Its Clubcard prices are key to savings—without a card, Tesco can be noticeably more expensive than discount rivals.
5. Sainsbury’s
Key feature: A balance between quality and cost
Often seen as offering slightly better quality and shopping experience than Asda and Tesco, though at slightly higher prices. Its own-brand range, particularly desserts, has a strong reputation.
Behind the cheapest supermarket rankings
Which? compared the prices of 75 popular items, including both branded and own-brand products, covering essentials like milk and bread as well as household goods.
In August 2025, Aldi’s basket averaged £127.92, the cheapest of all supermarkets surveyed. Waitrose was once again the most expensive, with the same basket costing £172.61—that’s 35% more than Aldi. This means shoppers could save over £40 on the same basket simply by choosing Aldi instead of Waitrose.
What about larger or branded shops?
While Aldi and Lidl are unbeatable for smaller baskets of everyday essentials, things change when it comes to larger shops or branded products.
Which? also analysed the cost of 190 items, including big-name brands that discount stores don’t always stock. Aldi and Lidl were excluded from this part of the survey. The results were revealing:
Asda was the cheapest for the eighth month running, at £474.86.
Tesco (with Clubcard savings) followed at £485.89.
Waitrose was the most expensive again, at £548.14—around 15% more than Asda.
For a family doing a weekly shop, the annual difference between Aldi and Waitrose could exceed £1,700.
So, while Aldi and Lidl dominate for basic groceries, those who need more branded items may still find better value at Asda or Tesco—especially if they use loyalty discounts.
Shopping smart
Choosing a supermarket isn’t just about headline prices—here are some tricks to save even more:
Mix and match: Buy everyday basics from Aldi or Lidl, then head to Asda or Tesco for branded goods.
Use loyalty cards: Tesco’s Clubcard and Sainsbury’s Nectar Card can unlock significant discounts.
Look for yellow ‘reduced’ stickers: Many supermarkets reduce prices on near-expiry food in the evenings (e.g. Morrisons before closing, Sainsbury’s after 7pm).
Check unit prices: The price per kilo/litre/unit on shelf labels helps identify the true bargain—bigger packs aren’t always cheaper.
Consider ‘wonky’ fruit and veg: These may not look perfect but are usually cheaper and just as tasty.
The tax secrets behind supermarket pricing
Your supermarket receipt also hides some useful tax lessons—mainly about VAT (Value Added Tax).
Knowing how VAT works helps explain why some items cost more, and sometimes even helps you save.
VAT is a consumption tax charged on the ‘value added’ at each stage of production and sale.
In the UK, the following rates apply:
20% standard rate – applies to most goods and services.
5% reduced rate – applies to certain energy and efficiency products.
0% zero rate – applies to essentials such as most unprocessed food.
How does this show up in supermarkets?
Zero rate (0% VAT): Most staple foods and drinks, such as fresh fruit and veg, meat, fish, eggs, milk, bread, rice, pasta, tea, and coffee beans.
Standard rate (20% VAT): Hot takeaway food, crisps, biscuits, chocolate, sweets, ice cream, fizzy drinks, bottled water, alcohol, pet food, toiletries, cleaning products, stationery, clothing, toys, appliances, and most non-food items.
Exceptions: Dairy alternatives like soya milk are usually zero-rated.
On your receipt, VAT is included in the product price and is often summarised at the bottom (e.g. ‘Price includes VAT @ 20%’).
Other taxes which might affect what you pay
Sugar Tax (Soft Drinks Industry Levy): Drinks with high sugar content are taxed at up to £0.24 per litre, encouraging manufacturers to cut sugar. Prices of high-sugar drinks are noticeably higher as a result.
Alcohol Duty: Built into the price of beer, wine, and spirits, based on alcohol strength—explaining why alcohol is relatively expensive.
Plastic Packaging Tax: Since April 2022, packaging with less than 30% recycled content is taxed at £200 per tonne, increasing costs for some products.
Why does this matter?
Understanding pricing: Explains why a bottle of water can cost more than milk (VAT on water, none on milk).
Saving money: Buying zero-rated ingredients to cook at home is both healthier and cheaper than VAT-rated processed foods or takeaways.
Smart choices: Recognising the impact of sugar and alcohol duties helps explain price differences between brands.
Why TB Accountants?
Professional Assurance: Our team includes ACA members and ACCA-certified professionals, delivering services to the highest industry standards.
Responsive Service: We respond to your inquiries within 24 hours, ensuring efficient communication across time zones.
Multilingual Support: Services available in English, Mandarin, Cantonese, Japanese, French, German, Spanish, Italian, Turkish, and more.
Trusted by Clients Worldwide: Consistently praised by global clients for proactive, professional, and reliable accounting and tax support.
For individuals and businesses looking for UK taxation services, use our contact form to get in touch for more information.
Get in touch with us at info@tbagroup.uk or for a free one-to-one consultation.