Ryan McDonnell, Chief Executive Officer at Lidl GB

How Lidl stays the cheapest supermarket ?

Lidl has earned the official title of the most affordable supermarket in the UK, surpassing all major competitors and even undercutting Aldi, according to the latest price comparison survey. The analysis, conducted by The Grocer, revealed that a basket of everyday items at Lidl costs a mere £50.27, making it more economical than its rivals, even after accounting for their discount schemes.

The survey found that Lidl’s everyday grocery items were over 10% cheaper than Tesco and an astonishing £19.91 cheaper than Waitrose, the most expensive retailer. This marks the fourth time that Lidl has claimed the top spot in The Grocer’s “Super Grocer 33” survey out of the five surveys conducted so far.

Remarkably, Lidl maintained its affordability advantage even when other supermarkets’ discount schemes were taken into consideration. Overall, the discounter was found to be £6.17 (10%) cheaper than Tesco, and even after applying Clubcard discounts, Lidl remained £5.13 cheaper. Similarly, the same products at Sainsbury’s were £6.80 more expensive without any benefit from the supermarket’s Nectar Prices.

This recognition comes at a time when traditional supermarkets have recently announced various price drops, highlighting Lidl’s ongoing commitment to providing better value for customers.

The Grocer conducts a monthly analysis comparing the prices of items on shopping lists across the country, encompassing fresh produce like milk and grapes, as well as everyday essentials such as deodorant and branded items like Hovis Bread and Kellogg’s Corn Flakes.

Lidl secured the lowest price for 26 products out of the 33 analyzed, and exclusively offered the most affordable price for five products across different categories. These include baby corn (£2.79), Kellogg’s Corn Flakes (£2.05), Domestos bleach (£1.39), prawns (£1.99), and custard creams (54p).

Furthermore, Lidl’s consistent affordability is not limited to The Grocer’s Super Grocer 33 basket; the Manchester Evening News has conducted a weekly price comparison for essential groceries over the past fourteen weeks, and Lidl has consistently emerged as the most cost-effective option.

Ryan McDonnell, Chief Executive Officer at Lidl GB, expressed his satisfaction with the results, stating, “Every week, independent analysis shows we are consistently the UK’s cheapest supermarket. As a result, we are seeing more customers coming through our doors and switching their weekly shop to Lidl from the traditional supermarkets. We know people switch to us to make savings but then stay with us when they realize that they’re not having to compromise on quality.”

Here is a summary of the price comparison among the supermarkets:

  • Lidl: £50.27
  • Aldi: £50.46 (+19p)
  • Asda: £54.42 (+£4.15)
  • Tesco: £56.44 (+£6.17)
  • Sainsbury’s: £57.07 (+£7.30)
  • Morrisons: £60.05 (+£9.78)
  • Waitrose: £70.18 (+£19.91)

Lidl’s ability to maintain its position as the cheapest supermarket in Europe can be attributed to several factors:

  1. Cost-Effective Supply Chain: Lidl has a streamlined and efficient supply chain that allows them to source products directly from manufacturers and farmers, eliminating intermediaries and reducing costs. They prioritize working with local and regional suppliers, enabling them to negotiate competitive prices and maintain quality standards.
  2. Limited Assortment: Lidl focuses on offering a limited range of carefully selected products. By avoiding excessive variety, they can negotiate better deals with suppliers and reduce operational costs associated with managing a large inventory. This approach helps them pass on savings to customers.
  3. Private Label Strategy: Lidl heavily emphasizes its private label products, which often offer similar quality to national brands at lower prices. By reducing dependency on well-known brands, Lidl can control pricing and achieve higher profit margins. Private labels also allow them to differentiate themselves and create customer loyalty.
  4. Store Design and Cost Optimization: Lidl stores are designed for efficiency and cost optimization. They typically have a no-frills layout with minimal decor, focusing on functional aspects. This approach reduces operational expenses, such as store maintenance and staffing costs, which contributes to lower prices.
  5. Economies of Scale: As one of the largest supermarket chains in Europe, Lidl benefits from economies of scale. By operating a vast network of stores and purchasing goods in large volumes, they can negotiate favorable terms with suppliers and achieve cost advantages that smaller competitors may not enjoy.
  6. Continuous Cost Monitoring: Lidl keeps a close eye on costs throughout its operations. They regularly review expenses, optimize processes, and identify areas for further cost reduction. This commitment to cost control enables them to maintain competitive prices.
  7. Lean Organizational Structure: Lidl has a lean organizational structure, minimizing bureaucracy and focusing on efficient decision-making. This agile approach allows them to adapt quickly to market changes and implement cost-saving measures promptly.


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