Supermarkets face off on grocery prices as Asda remains most expensive

Recent shopping comparisons have highlighted significant discrepancies in grocery prices among major supermarkets in the UK, with particular focus on a selection of essential items. The findings reveal that Asda has been identified as the most expensive supermarket for the last nine consecutive weeks, with current prices for staples such as chicken and butter markedly higher than its competitors.

A typical basket of eight essentials, monitored since March 2022, currently costs £12.89 at Asda. In comparison, Tesco, Sainsbury’s, Aldi, and Lidl offer a more competitive price for a similar basket, with their prices ranging from £12.02 at Aldi to £12.43 at Tesco. The specific item under scrutiny includes a 300g pack of chicken, which is priced at £2.65 at Asda—a notable 18% more than the £2.25 charged by its competitors. Morrisons is the only supermarket with a higher cost than Asda at £2.41 per 300g.

In addition to these findings, Asda has recently increased its butter price to £2 per block, while others continue to sell it for £1.89. While Lidl had a similar price increase, it has since reverted its butter price back to £1.89. The complete cost breakdown reveals that Aldi maintains the overall lowest total for the selected products, which include a loaf of bread, milk, teabags, coffee, beans, and mince.

The pricing strategy adopted by Aldi has led the supermarket to assert its value, claiming to be the cheapest supermarket in the UK, a position they have been awarded by the consumer group Which? for three consecutive years. Aldi’s representatives argue that their comparisons with other supermarkets do not consider like-for-like products or the perceived higher quality of their offerings.

Asda, in response to ongoing comparisons, has expressed disagreement with the methodology, suggesting that the limited selection does not accurately reflect the overall value customers receive. They contend that their Just Essentials line offers both breadth and affordability. The supermarket highlights its recognition as best-value in independent price surveys.

Other supermarkets have also weighed in on the competitive landscape. Morrisons, for instance, offers a similarly priced basket at £12.11, while Lidl’s price stands at £12.23. Sainsbury’s and Tesco follow closely with prices of £12.40 and £12.43, respectively.

The extensive shopping comparison has drawn attention to the variations in prices and utilised product sizes among different supermarkets. Each retailer’s advocacy for its pricing models reflects broader trends in the grocery sector, particularly in the current economic climate where consumer budgeting is increasingly prominent. Notably, Asda’s argument rests on its broader pricing strategy and promotional offers, in contrast to Aldi’s focus on affordability and product quality.

Overall, this ongoing price competition among the UK’s major supermarkets illustrates the complexities of grocery shopping in a landscape marked by diverse pricing strategies and consumer perceptions of value.

Source: Noah Wire Services