Tesco Overtakes Asda as UK’s Cheapest Supermarket – Which? Study

For the first time in over a year, Asda has relinquished its position as the United Kingdom’s cheapest supermarket for a full grocery shop, according to research released today. Tesco has taken the lead, though the advantage is contingent on customers utilizing its Clubcard loyalty scheme.

The study, conducted by consumer group Which?, found that a basket of 228 essential grocery items at Tesco totaled £588.96 for Clubcard holders in January 2026. This was a mere £1.45 less than Asda’s comparable basket price of £590.41. While a narrow margin, it marks a significant shift in the competitive landscape, ending Asda’s reign which began in December 2024.

However, the cost benefit is directly tied to Clubcard membership. Shoppers without a Clubcard face a substantially higher bill at Tesco, reaching £641.09 – £52.13 more than the discounted rate and significantly above Asda’s standard price. This highlights the increasing importance of loyalty programs in determining actual grocery costs for consumers.

The shift comes at a challenging time for Asda, which has been grappling with declining sales following its acquisition in 2021 by the Issa brothers and TDR Capital. The company has since seen a change in leadership, reinstating Allan Leighton as executive chairman in 2024 in an attempt to replicate a previous turnaround success. The competitive pressure from Tesco adds another layer of complexity to Asda’s recovery efforts.

Beyond Tesco and Asda, the Which? study revealed a wider range of pricing across major UK supermarkets. Sainsbury’s registered a basket cost of £603.55 with a Nectar card, rising to £659.85 without. Morrisons came in at £612.88 with a More Card and £613.74 without. Waitrose consistently remained the most expensive option, with a total of £679.20 – a difference of £90.24, or 15 percent, compared to Tesco’s Clubcard price.

A separate analysis by Which? comparing a smaller basket of 89 items revealed Aldi as the cheapest at an average of £164.74. Lidl followed closely behind at £166.53. This suggests that while Tesco may offer the best value for a large shop with a Clubcard, the discounters continue to provide the most affordable options for smaller, more frequent purchases.

Specifically, Tesco’s smaller basket with Clubcard totaled £182.92, while Asda reached £183.04. Morrisons, Sainsbury’s (with Nectar) and Ocado followed, with Waitrose again being the most expensive at £221.53 – £56.79, or 34 percent, above Aldi’s price.

The study’s methodology involved comparing prices of popular grocery items, including branded products like Birds Eye peas, Hovis bread, Cathedral City cheddar, and Hellmann’s mayonnaise, alongside own-brand staples such as milk, butter, potatoes, and baked beans. The analysis incorporates special offers and loyalty pricing, but excludes multibuys.

Reena Sewraz, retail editor at Which?, emphasized the importance of shopping around. “With food bills still a major concern for many households, it really does pay to shop around – choosing one supermarket over another could save shoppers hundreds of pounds over the course of a year.”

Which? noted that it does not disclose the full list of products used in its comparison to prevent supermarkets from manipulating prices. The data is based on average prices collected throughout January using an independent price comparison website.

Asda responded to the findings by stating that it was the lowest-priced supermarket throughout 2025 on Which?’s big trolley comparison, and £50 cheaper than Tesco on a like-for-like basket without loyalty pricing. A spokesperson asserted that Asda “remains the best-value supermarket for the big family shop with prices available to all.”

Tesco, in turn, highlighted its commitment to value through a combination of Aldi Price Match, Clubcard Prices, and Everyday Low Prices. A Tesco spokesperson stated the company aims to “deliver great value to all Tesco customers however they choose to shop with us.”

Waitrose emphasized that value extends beyond price, citing its exceptional product quality and customer service, as well as its commitment to ethical sourcing and animal welfare standards. Morrisons highlighted the benefits of its More Card, offering points and personalized discounts.

Separate data from Worldpanel by Numerator indicates that grocery price inflation has begun to ease, falling to 4 percent in January, the lowest level since April 2025. This easing trend coincides with a record high in spending on supermarket own-label goods, accounting for 52.2 percent of grocery sales. Spending on promotional items also increased significantly, rising by 10.9 percent year-on-year.