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Big four supermarkets beating so-called discount rivals at their own game, News store tests find

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Published Date: 16 May 2009
THE big four supermarkets are now beating their no-frills rivals on the price of many weekly shopping basics.
Budget own brand ranges introduced by Asda, Tesco, Morrisons and Sainsbury's are undercutting traditional discounters Lidl and Aldi on a wide range of staple items.

A price comparison of a shopping basket containing 31 basics – from bread, milk and cheese to fresh meat, frozen food and toiletries – found mainstream supermarkets were either cheaper than or matched the discount chains more than half the time.

The Evening News's test shop at six stores in and around Edinburgh found the budget ranges at the "big four" up to 73 per cent cheaper than the discount chains' equivalent products.

But Aldi and Lidl were still generally cheaper for fresh produce, such as fruit and vegetables, milk and eggs.

At least one of the mainstream supermarkets was cheapest on 15 out of 31 items, while Lidl and Aldi undercut them on 14 products, with two items being almost identically priced across the board.

Asda was the cheapest for the overall shop, at £42.90, narrowly beating Lidl by just 17p – the cost of a tube of value brand toothpaste. Only Sainsbury's (£48.16) was more expensive than Aldi, at £46.39.

The no-frills stores have – perhaps turning popular preconceptions on their head – defended their prices, saying it is about value for money and shoppers have to take quality into account.

The new value brands may not go as far as the price wars of the mid-1990s, when supermarkets sold tins of beans for as little as 3p, but there has been significant discounting, including two litres of lemonade for 18p at the "big four" supermarkets.

Some of the cheapest items are thought to be "loss-leaders" designed simply to lure shoppers into the store.

Cost-cutting may be the main battleground for Scotland's supermarkets, but bargain basement shoppers can expect little in the way of choice. A Consumer Focus Scotland spokeman said: "The size of your weekly bill is a huge factor in where you choose to go to shop.

"Supermarkets know how important price is, which is why we've seen a lot of work going in to offering a range of low-cost items to help customers, especially with so many people finding money tight at the moment.

"But at these lowest prices, whether in the specialist discount supermarkets or the others, consumers have only very limited choice.

"If you don't like what's on offer for this cheapest price, there's very rarely an alternative for the same amount. Your only option then is to pay more."

As shoppers have looked to save money during the economic crisis, the discount chains have been making big inroads into the mainstream stores' traditional market.

Their collective turnover increased by more than a quarter last year.

Lidl now has seven stores in Edinburgh, and Aldi, which currently has a store in Musselburgh, plans to open its first Edinburgh premises in Gorgie this year, with a dozen more Aldi stores eventually planned for the Capital.

But the big four have responded to the competition from discounters with their own low-cost brands – in February, Tesco announced it was to add a further 100 lines to its discount brand range in an attempt to fight off the growing threat posed by Aldi and Lidl.

The Evening News visited Lidl in Dalry Road, Aldi in Musselburgh, Sainsbury's at Meadowbank, Tesco at Corstorphine, Asda at Chesser and Morrisons at Piershill and searched for the cheapest version of 31 basic items.

Our findings echo those of the trade magazine The Grocer, which found that Asda was the cheapest place to shop in the UK.

Its basket of 33 basic items cost £30.76 at Aldi – £11.66 more than the cheapest supermarket Asda.

According to the report from independent price checker ESA, no-frills stores Lidl, Aldi and Netto are up to 61 per cent dearer when compared with budget label goods at the big four supermarkets.

It found Lidl was £4 more expensive than Tesco and £8 dearer than Asda. Adam Donaldson, chief executive of ESA, said: "These findings are really significant, given consumers' perception that discounters are less expensive.

"The question for consumers now becomes one of value. Consumers must decide whether they can obtain the same or better levels of quality at Tesco or Asda as the discounters.

"If the answer is yes, the shift in shoppers to the discounters could easily reverse."

Lidl spokesman Marco Ivone said: "At Lidl we are keen to provide the people of Scotland with a quality offering at the best possible price.

"Our products are not comparable with value ranges from other retailers in price, simply because the quality is completely different.

"Families across Scotland can get quality products at the best price, along with some familiar Scottish brands, at Lidl."




CHEAP AS CHIPS

THE rock-bottom prices being offered by the supermarkets open up the prospect of some incredibly cheap meals.

You could feed a family of four for just 61p if you shopped around a little, by throwing together pasta from Lidl (25p for a 500g bag) with Asda's 36p Smart Price bolognese sauce.

Or if you wanted to push the boat out, you might fancy a feast of sausage, chips, egg and beans for £1.43.

You would need a pack of eight budget sausages for 48p from any of the "big four" supermarkets; a tin of beans from Asda at 27p; half a bag of Lidl's frozen chips for 30p; and four eggs for 38p from the discount chain.

And why not wash it all down with two litres of own-brand lemonade for 18p available from many of the supermarkets.

One drawback with this meal though is that you would blow everything you might have saved before you even start eating – on petrol to get round all the supermarkets.

Weblinks: www.consumerfocus.org.uk



Page 1 of 1

  • Last Updated: 16 May 2009 12:53 PM
  • Source: Edinburgh Evening News
  • Location: Edinburgh
 
1

It's me!,

16/05/2009 11:04:33
But Aldi and Lidl still win on quality over the big four's economy products
2

Brodric,

16/05/2009 11:10:26
These 'economy' meals may sound very worthy and thrifty - something to be congratulated.

But, with the state of the nation's obesity problem, these kind of meals are part of the problem.

What kind of sausages can you buy for 48p? or tin of beans? These items are full of sodium, stabilisers and flavourings. In other words, they are not natural. And the description of what can be considered 'protein' is frightening. The stuff in cheap sausages are the very parts of the animal you can't do anything else with.

If we are to solve the problems of obesity and poor health, we need to ensure the poor have enough money to buy good quality products. The kind of products you can find in local shops at much the same price as supermarkets.
3

alfonsa pedrosa,

embra 16/05/2009 12:07:56
So cost cutting can be done even in the bad times we are going through.
4

Derts n telly ya basta,

Edingborough 16/05/2009 12:52:22

Dunno if it's the weak pound, but LIDL's isn't mega-cheap like it makes out.

#2:

"The kind of products you can find in local shops at much the same price as supermarkets"

Local shops just get stuff from the cash'n'carry.
5

Charles Linskaill,

,....On the Mobile. 16/05/2009 12:58:44

This is fabulous News for the ones, trying to make ends meet, such as our poor students, and single Mothers etc.
I have noticed and tried some of these, 'basic bargain foods', and they are very good!, such as a 2litre bottle of Coke for 43pence, rice pudding for 18pence, and canned peaches for 36pence, a pack of 12crisps for 47pence, and many more at your Tesco stores!.

6

The Ayrshire Bard,

16/05/2009 13:16:10
#5 Charles Linskaill. Correct about the quality of someof the 'cheaper' lines. The supermarkets still demand that quality control of the cheap lines is as rigid as for the normal lines. However, I'm a bit doubtful of the meat content in a pack of sausages for 48p. I've become addicted to Tesco's own brand plain chocolate which is less than half the price of Cadburys and which really is good value.
7

Charles Linskaill,

Edinburgh 16/05/2009 13:31:45

The Ayrshire Bard 6,

Yes I know, addicted to a large pack of 'salted peanuts' for,..... 'THE BARGAIN PRICE OF 23PENCE'

And then we get a 'little-more' at your Tesco Store, the 'points-make-prizes', a welcome bonus when the money coupons come through your door!



8

steve 1511,

aberdeen 16/05/2009 13:36:16
tescos quality on fruit and veg is far superior to any of them, as for asdas rollback prices 5000 reduced by a penny what a swizzle that was,as for to claim they are the cheapest supermarket every year based on only 33 prices is another swizzle,as with anything in life you get what you pay for,pay cheap for rubbish and you get rubbish,
9

Charles Linskaill,

Edinburgh 16/05/2009 14:08:08

steve ~8,

Correct about Asda!, You have to be very careful and Know your Prices, the worst at Asda is their hardware, such as a Television costing near on £100.00 more than any-other store, and it is an inferior make.

For the Children say!,,,a 'Glue-Stick' will cost you £1.20 more at Asda, than it would for the same product at Tesco.

10

Gulfstream Flier,

16/05/2009 15:15:30
Price shopping for milk, eggs etc. is easy because the basic ingredients are identical.
<
Not so for most other items, especially as mentioned in other comments things like sausage. The variation in meat content is wide. Soups can be even more confusing.
<
Something more than just the price has to be "budget" about the supermarket budget brands, otherwise how could they make any money, given the tight margins.
<
I used to assume all supermarket "own" brands were a better deal than the more expensive brand named items. The ingredient mix would be similar to the higher priced brand names I thought. Actually, often there is a higher percentage of "filler" in the cheaper product. Not the same value at all.
<
Another mis-conception can sometimes apply to the "large economy size" regardless of brand. Not always is the bigger quantity always cheaper per gram or whatever.
<
These marketers will pull the wool over your eyes every chance they get........
11

Angus Mcdonald,

Edinburgh 16/05/2009 15:20:02
At the end of the day TESCO,SAINSBURY'S AND MORRISONS ARE BRITISH OWNED AND BRITISH COMPANIES.
ASDA ARE AMERICAN OWNED BY WALMART WHILST LIDL AND ALDI ARE GERMAN!!!.

ISN'T IT ABOUT TIME WE SUPPORTED MORE BRITISH COMPANIES?
12

SandyBottoms,

Edinburgh 16/05/2009 15:27:36
Typical that the paper compared the price of a full meal of "sausage, chips, egg and beans for £1.43". I bet next week we'll be hearing about how obese everyone is getting because all they can afford is sausage, egg and chips! I bet this "everyday shopping basket" has considerably less than the 5-a-day suggested by doctors and government.
13

r chee bold,

16/05/2009 16:27:52
I thought there was an Aldi in Granton,also price is not everything, I put down some budget sausages from all the leading supermarkets for my very greedy dog to eat, she did not speak to me for 4 days, and Ireally do not blame her.
14

r chee bold,

16/05/2009 16:31:31
Pick up the tomatoes in Lidl,give them a shake, smell them, wow, you have died and woke up in heaven.......
15

Kirspin,

Fergus,Ontario ( twined with Blairgowie) 16/05/2009 17:29:07
When we where home last September, we shopped Lidl on Dalry road as we enjoy German type foods, also shopped at ASDA at Chesser Avenue for Foods too, all your prices are interesting, I think people in the UK have lots of choice and don't limit your shopping to just UK owned stores, the World is a huge Market Place and it's getting smaller all the time.
16

blackley,

Edinburgh 16/05/2009 18:07:13
Avoid the celery at Lidl. It's horrid.
17

Andrew,

16/05/2009 18:15:12
11) I quite agree - you're spot on here

Tesco (TE S-tockwell and Jack CO-hen), Wm Morrison & J Sainbury, all established by British owners and now well-know and well-respected BRITISH RETAILERS. Asda was once "Associated Dairies" but the milk and cream has long gone sour!!!!
18

Up the NWO,

16/05/2009 18:27:52
Tesco is the cheapest by far the rest are pur rip offs especially Lidl and Morrison's!

Lets all shop at Tesco lets all shop at Tesco na na na na hey na na na hey.
19

elayne,

16/05/2009 19:10:59
i like lidl and aldi for a change occasionaly,
20

florence f,

Edinburgh 16/05/2009 20:02:41
If you really want to save money there are stratagems other than these. 1.Poundstretcher, B+M,Poundland and so on often have goods cheaper than the supermarkets and just as good, eg Poundstretcher currently has baked beans 19p a can and Poundland has 1.5 kg sugar for £1. 2.I NEVER pay full price for meat, ever. I buy from the reduced chiller cabinets and freeze it. The savings on that alone would pay for a small freezer in 2-3 months, let alone what you save on bread, milk, cheese, fruit and veg etc also bought from the reduced sections. And i don't find they go off quicker than full-priced stuff as long as you're sensible and either use them soon or esle freeze them till you want them (you can freeze milk, beaten eggs, cheese, butter/marge, chopped veg, anything really.) 3. I wouldn't give value sausages houseroom, frankly - I buy the dearer ones from the half-price section and freeze them.
21

SPL,WORLDCLASS MANAGER,CHAMPIONSLEAGUE,RONALDINHO ,

17/05/2009 06:03:05
The big stores economy brands are absolute rubbish.
I wouldnt feed them to my dog!
The quality at Lidl and Aldi is far higher and still a lot cheaper than the leading brands where you pay for the name.
22

The Ayrshire Bard,

17/05/2009 14:44:08
I spent the last 25 years of my working life supplying the major supermarkets with fresh produce. There is absolutely no difference in the quality between Tesco, Sainsbury and ASDA. The only one willing to pay to get the very best is M&S, and it shows on their shelves, but that means they are always going to be more expensive. I served LIDL for a short while but couldn't keep up with their ridiculous demands.
23

Foo,

17/05/2009 19:42:05
Why on earth would anyone want to shop in a supermarket for cheap meat? Go to the local butcher or fishmonger, you'll get good quality for a reasonable price.

All the wrinkly pinch faced wimmin who complain about prices, try not smoking 400 Regal a week and you might be able to put a decent cut of fish or beef on your childs plate.
24

malcyh,

17/05/2009 21:37:10
#11 Maybe they are all British, but they don't all supply British meat. New Zealand almb, Brazilian beef, Argentinian beef.............Morrisons is the only one which prides itself on British meat. Lidl and Aldi do have a lot of British products. When things recover at least they will keep the prices down.
25

Ian down under,

Musselburgh 18/05/2009 04:04:42
#23 I would be wary about declaring M&S to be the best. I had a tour round a pig factory in Manchester a few years ago. They cured and packed bacon as well as pork pies and all sorts of piggy delights.
The place was clean, well run and efficient. The interesting bit was the packing line. I remember for pork pies there were 8 packing lines one for Walls brand, one for Lawson of Dyce, one for Asda, one for M&S, And other stores made up the eight. In other words if you buy a packaged pork pie it comes from the same production line as the next shop's.
The only differnece is that each regional factory produced for its own area.
A bit like British Rail sandwiches: roundly criticised by everyone yet the same people raved about M&S sandwiches although they came from the same sandwich making factory in Wigan.
26

Foo,

18/05/2009 10:52:02
24 Brian Cannon 01315551106

Yes, I definitely think you are getting concerned over something worthwhile and not wasting time and effort at all.

Well done.
27

Foo,

18/05/2009 10:53:50
24 Brian Cannon 01315551106

01315551106

Is it a good idea to put your phone number in the public domain?

 

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