Lidl Meadow Fresh houmous

Source: The Grocer

Lidl was exclusively cheapest on 20 items, including houmous

Lidl’s Big on the Big Shop campaign is paying off, with new Kantar research revealing that two thirds of its 7.5% growth is coming from full weekly shops - and looking at its latest performance you can see why.

The discounter’s £45.42 basket was £3.85 (or 7.8%) cheaper than nearest rival Asda, and while that’s down on the 13.4% gap in its last Grocer 33 guest retailer appearance, alongside the gap over Sainsbury’s (12.2%), Tesco (17.4%), Morrisons (17.9%) and Waitrose (31.9%) it is still sufficient to make a meaningful difference for shoppers on a tight budget.

Lidl’s strong showing was built on being exclusively cheapest on 20 items - including the houmous, chicken, veggie sausages and mini apricot wheats - while on a further five items it matched a rival’s cheapest price. This result came despite the basket being 48p dearer than this time a year ago.

In contrast, the price of Asda’s £49.27 shop was 60p cheaper than this time a year ago, showing that it is continuing to drive prices down, while four multibuys - in addition to seven price reductions - added further value to the shop.

Sainsbury’s continues to eschew multibuys but having won the weekly shop for the past two weeks, its £51.75 basket provided further evidence of sharper pricing. It was £1.27 or 2.4% cheaper month on month and 57p cheaper versus a year ago, while Tesco and Morrisons - dearer by £3.25 and £3.60 respectively - were well off the pace as they focused heavily on multibuys to provide value, with the Morrisons basket notable for the 3.6% price increase year on year.

At £66.74 the Waitrose basket has also risen sharply in price, up 2.6%, and it was over £20 more expensive than Lidl’s. On the basics like this it doesn’t stand a chance, but it’s focused on differentiation.