Tesco Overtakes Asda as UK's Cheapest Supermarket in Grocery Price Battle

A new price analysis of major UK supermarkets reveals a notable shift, with Tesco now recognised as the most affordable for an average big weekly shop, surpassing Asda. This change reflects heightened competition in the sector, especially from German discounters Aldi and Lidl, which has compelled traditional 'big four' supermarkets to aggressively adjust their prices. The methodology generally involves comparing the total cost of a representative basket of grocery items, including both branded and own-label products.

The reconfiguration indicates that Asda's longstanding reputation as the price leader is being directly challenged, while Tesco's investments in price-matching schemes and loyalty card offers seem to be making a measurable difference. This intense focus on price is a response to consumer pressure amid ongoing cost-of-living pressures, where household budgets remain tight.

For shoppers, the diminishing price gap means the cheapest option may now depend more on specific items, promotions, and the use of loyalty schemes rather than a single retailer maintaining a clear lead in cost. Competition is likely to remain fierce, with all major supermarkets under pressure to balance competitive pricing with profit margins, which could lead to further shifts in the rankings.