UK supermarkets are experiencing significant price shifts, with Morrisons and ASDA now offering lower prices than budget retailers Aldi and Lidl for staple items. This new pricing trend marks a notable turn of events, particularly for consumers seeking value amid rising living expenses.
Since March 2022, price comparisons of grocery baskets have consistently shown Aldi and Lidl as the cheapest options for eight basic items. Yet, recent analysis reveals both Morrisons and ASDA have taken the lead, thanks to aggressive price adjustments on popular essentials like bread, milk, butter, beans, and meats. This week, for example, Morrisons edged out its competitors with the most affordable basket totaling £12.14, which is just 7% more than Tesco’s total of £13.04.
The pricing comparison indicates substantial shifts across the board. Morrisons has reduced the price of its chicken breasts significantly for loyalty card holders, dropping from £2.65 to £2.35. ASDA also made some notable reductions. Both chains have been praised for their competitive tea bag pricing, undercutting Aldi to capture more budget-conscious shoppers.
Conversely, Aldi recently raised the prices of some items including minced meat and coffee. Aldi’s prices increased, with mince now at £2.49, up from £2.39, and coffee at £1.99. Despite these changes, Aldi stands firm on its quality claims, arguing its products are superior to its competitors. An Aldi spokesperson stated: "Our promise to customers is...for three years running,” emphasizing Aldi’s commitment to providing lower prices overall.
ASDA responded to the price comparison by insisting it offers the largest and cheapest range of essentials through its nutritional offerings and bulk purchase deals, countering the notion of being less competitive. An ASDA representative said: "Across the board...alongside Aldi's." This indicates ASDA's persistent focus on broadening its appeal through health-focused options.
Both supermarket giants had faced criticism months prior for inflated prices, particularly around the holiday season when ASDA was pointed out for selling its chicken breasts 20% higher than most competitors. This kind of backlash has seemingly transformed ASDA’s approach, as it appears to be shifting toward greater price competitiveness.
Meanwhile, as currency and market fluctuations continue to affect disposable consumer incomes, especially among vulnerable demographics, ASDA has introduced its £1 meal deal for seniors. This initiative provides hot soup, rolls, and unlimited tea and coffee, catering to the over-60s crowd. The deal aims not only to offer affordable meals but is also part of ASDA’s broader community engagement strategy. During the first two weeks of the program, over 60,000 meals were served to elderly customers.
ASDA’s initiative was initially launched to help older customers facing sky-high living costs, particularly those 65 to 74 years old, who have seen their disposable incomes decline. An ASDA spokesperson remarked: "The initiative saw over 1.2 million...until February 28, 2025,” reflecting the supermarket's commitment to supporting those affected by financial strain.
This growing focus on community and customer engagement through meal programs highlights the importance of social interactions, especially for senior citizens. ASDA’s Community and Customer Champions are actively inviting local seniors to dine together, recognizing the loneliness some face. Research has shown one in ten older individuals would visit supermarkets just to engage socially.
Critical insights from ASDA’s income tracker suggest the lowest-income households will remain under pressure from the cost-of-living crisis. Many families are contending with average weekly disposable income shortages of £66, necessitating affordable food and engagement options like those now offered by ASDA.
To summarize, the competitive pricing battle among UK supermarkets is intensifying, with Morrisons and ASDA rallying to draw consumers away from discount retailers. The surge of promotional initiatives such as the £1 meal deal for seniors highlights these retailers’ attempts to adapt to economic pressures and consumer needs. The second wave of supermarket pricing concern reflects broader economic challenges and the ever-evolving strategies employed to entice consumers amid fluctuated market conditions.