Which supermarket is REALLY the cheapest?
We’ve all seen the competitive advertising – Lidl vs Tesco, Sainsbury’s vs Asda, Morrisons vs Aldi. But how do you know who is ‘telling the truth’? Which supermarket is genuinely the best value for money as the cost-of-living soars?
The need for supermarkets to compete more openly has come about due to the surge in food prices caused by inflation – from the war in Ukraine, to increased energy costs in making and transporting food – prices rose sharply in the first few months of 2022. By February, food inflation prices had climbed by 4.3%, the highest since September 2013 and by the summer, that had grown to 8%.
We’ve seen Heinz, Marmite and Ben and Jerry’s hike their prices by 11.2% in the second quarter of 2022. On average, fresh food including fruit, vegetables, meat and dairy rose by an average of 8% this year (so far), while it’s estimated that sauces and condiments are up by as much as 14.3%. The prize for the biggest increase, however, goes to margarine and other vegetable fats, with a whopping 26% increase.
Research firm Kantar, estimated that, since June, the average annual grocery bill will cost us £380 more – around £32 extra per month. With overall inflation at a 40-year high and set to increase, competition to secure brand loyalty is growing fiercer.
Changing consumer behaviour
Here’s a thought: Could supermarkets need us, almost as much as we need them?
Changing consumer behaviours are hitting the supermarkets hard. Shoppers are focusing on price as opposed to brand loyalty. There are also signs that shoppers are holding off buying those tempting items, like clothing, during their regular shop. If it’s a case of seeking out a cheaper option, or stop buying altogether, it appears many are opting for the latter. The term ‘mend and make do’ may well make its way back into daily chatter.
Unusual things are afoot. Amazon Fresh has started to match Tesco Clubcard prices on items such as fruit, vegetables and meat. Those that recall Adsa’s ‘Farm Foods’ brand will be fascinated to hear that they have launched this principle again, calling it ‘Just Essentials’, which is a level down in price from their previous ‘Smart Shop’ . It’s an interesting time where ‘value brands’ are being usurped by ‘super value’ brands.
So, how do we go about ensuring we really get the best deals on our groceries?
Best value supermarket
Which? declared that Aldi the cheapest supermarket in the UK, quickly followed by Lidl. The tests were carried out by filling a trolley with 52 popular grocery items and comparing it to their rivals.
Image courtesy of Which?
For larger families or bigger budgets, the order isn’t vastly different – however, as Which? conducted this test using branded items, such as Cathedral cheese and Andrex, they were unable to include Lidl and Aldi.
Image courtesy of Which?
Of course, ‘value’ can be in the eye of the beholder. Shopping around for ‘good value’ can be a little different to ‘cheapest prices’ – for example if you like a particular brand of sauce, as an example, you’re likely to purchase it when it’s on a 2-for-£3 offer, or £2 in one store versus £2.50 in another, as opposed to a 99p store brand. For that reason, it can be difficult to truly compare supermarkets based on price alone.
Also, when the tests are carried out, it’s virtually impossible to compare identical items due to availability, but Which? did take this and changing grocery trends into account to obtain the figures shown.
We dare say that there will be a change in the order of ‘cheapest supermarket’ as the year rolls on – competition between them is increasing – after all, they will all have our Christmas dinners to vie for. However, it is very clear that, if you are truly seeking a ‘lowest budget option’, then it looks like you can’t go too far wrong with Aldi and Lidl. If you prefer branded foods, then Asda may be your best bet at the moment.
If you would like to see how basket prices have varied over the year, Which? updates this page each month. It’s also worth signing up to their emails, to keep up to date with the best value food and drink, and other cost-saving tips.
Sources: Which?, The Guardian, Financial Times, Daily Mail, The International Monetary Fund, BBC, Kantar, Retail Week.
