How supermarket price wars are helping UK shoppers save money
The good news for your weekly food shop: budget supermarkets are driving down prices across the board, and it’s worth knowing why.
Lidl has just overtaken Morrisons to become Britain’s fifth largest supermarket, with an 8.7% market share according to the latest figures. The German discount chain is opening 50 new stores over the next year — a move that’s already helping millions of UK households cut their grocery bills.
This matters to you because competition in the supermarket aisle directly affects what you pay at the till. Lidl and Aldi, another German discounter, have grown relentlessly by offering genuinely cheaper prices. Twenty years ago, Lidl held just 1.4% of the market; today it’s expanding rapidly and forcing traditional supermarkets to match their prices or lose customers.
The numbers show why shoppers are voting with their feet. Lidl saw over half a million extra customers in just three months, with sales up 8.6%. By contrast, Morrisons — which was taken over by a US private equity group in 2021 — managed only 1.4% growth. Asda, also owned by private equity, actually saw sales fall.
Good news on inflation: grocery price rises have eased to 3% for the four weeks to 14 June, down from 3.1% the month before. While some items like fresh fish and skincare are still rising quickly, butter and smoothies are actually getting cheaper.
If you haven’t tried Lidl or Aldi yet, now’s the time. Use their store locator on their websites to find your nearest branch. Both offer solid quality at significantly lower prices than Tesco, Sainsbury’s and Asda — the three supermarkets that control nearly 59% of the market between them.
The wider point: supermarket choice genuinely saves you money. Don’t be loyal to one chain out of habit. Compare prices on your regular items, and don’t assume the big names offer better value — often they don’t. Even switching one or two shops a week to a budget supermarket can cut your annual food costs meaningfully.