Cheapest Supermarket in London? Here’s the Real Winner

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With the rising cost of living and food prices climbing higher every month, many shoppers are on the lookout for the cheapest supermarket in London.

Grocery prices can vary widely between stores, especially in a city as large and diverse as London. From loyalty schemes to online delivery prices, we’ve looked at the key factors that affect your total bill to find out where you can get the best value for your food shop.

How we found the cheapest supermarket in London

This article uses the latest monthly price comparison from Which?, an independent price comparison website, which looks at a basket of 79 items. This includes popular products like own-label products, Hovis bread, and Birds Eye peas. The data compares the prices from UK’s biggest supermarkets across the country, including the effect of supermarket’s loyalty schemes.

While we’ve based much of our comparison on Which? data, we’ve also considered other options that are not part of the Which? analysis, like Iceland, Costco, and several online supermarkets. These alternatives can sometimes offer competitive prices, especially for bulk items or frozen goods, making them important to consider in your search for the best price for your groceries.

Supermarket price comparison 2025

Based on the latest research, here’s a breakdown of prices for a basket of 79 items at major supermarkets across the UK. Prices may vary in London compared to the rest of the United Kingdom due to local cost differences, but the trends are generally consistent.

Source: Which? supermarket price comparison, March 2025

Aldi & Lidl: Britain’s cheapest supermarkets

When it comes to finding the cheapest supermarket in the UK, Aldi holds the top spot. It offers shoppers a wide selection of own-brand products at low prices. While Aldi does not have a loyalty scheme, its prices remain consistently low, making it the best option for those seeking the cheapest price for everyday items.

Just behind Aldi, Lidl closely takes the second place for the UK’s cheapest supermarket title, especially when using the Lidl Plus app. This loyalty scheme, which provides discounts, special offers, and access to best bargains via the app, can bring prices down even further. Whether you’re doing a big shop or just picking up some household essentials, Lidl is a top competitor in terms of the cost of a larger trolley.

On the opposite end of the price spectrum, Waitrose is consistently the most expensive supermarket, along with M&S, which isn’t included in the Which? comparison.

Iceland: Budget-friendly option worth considering

Though not included in the Which? price comparison, Iceland remains a popular choice for budget-conscious shoppers in London. In general, Iceland supermarkets are considered budget-friendly, especially for frozen foods, which is where the retailer has traditionally built its reputation. However, its product range goes well beyond frozen items — including fresh produce, store-cupboard essentials, own-label products, and household goods.

While they offer good value on certain items, prices can vary, and some products may be more expensive than at other major supermarkets. Still, Iceland, alongside Aldi and Lidl, is consistently rated as offering good value for money.

Iceland often features multi-buy deals, regular promotions, and a Bonus Card scheme that allows shoppers to save in advance and access exclusive offers. They also offer free delivery on qualifying online orders, making it a convenient choice for larger or regular shops.

Costco: Bulk shopping for bigger savings

Costco can be an excellent choice for larger households that buy in bulk or for individuals catering for big parties and barbecues. However, it’s important to have enough storage space and typically a car to transport your purchases home. Not everyone will necessarily save money, as Costco’s prices often do not surpass those of supermarket own brands or those at Aldi and Lidl.

Despite being a membership-based retailer, Costco offers substantial savings on household essentials, cleaning products, and non-perishable food items. Generally, the lower prices for these bulk items can often be cheaper than purchasing smaller quantities at supermarkets like Sainsbury’s or Tesco. For larger shopping trips, Costco can be a great way to save on everyday items in bulk.

While Costco is generally not included in Which? price comparisons, it remains a popular option for those willing to pay a membership fee in exchange for savings on larger purchases.

Cheapest online supermarkets

For busy Londoners who prefer the convenience of online shopping, several supermarkets offer home delivery with varying fees, minimum spend requirements, and delivery pass options. The table below also highlights first-order discounts, helping you find the best deals. Unfortunately, the cheapest supermarkets in London, Aldi and Lidl, don’t currently offer full home delivery services (though Aldi does partner with Deliveroo in some areas for a limited range of essentials).

Budget grocery stores & food apps

If you’re looking to save money on your grocery shopping in London, there are plenty of alternatives to the big-name UK supermarkets. While Britain’s cheapest supermarket might not always deliver, a mix of cheap online supermarkets and free or discounted food apps can help stretch your budget further.

Cheap online grocery stores

Several online grocery stores offer heavily discounted goods, focusing on bulk, clearance, or surplus stock. They’re a smart option for anyone doing a bigger shop or simply topping up the cupboards:

Approved Food: Online grocery store that offers clearance items and branded products nearing their best-before dates. A go-to for snacks, household goods, and non-perishables at low prices.
Low Price Foods: Similar to Approved Food, this retailer focuses on low-cost clearance items, perfect for stretching your weekly or smaller shopping list.
Discount Dragon: Recently absorbed Motatos UK. Known for short-dated stock and heavily discounted branded products, often with special offer prices for new users.

Free and discounted food apps

In addition to online retailers, a growing number of apps make it easier to access discounted groceries or even get food for free in London. These apps help reduce food waste while making grocery prices more affordable for everyone:

Shopmium: A cashback app offering deals on branded items, often including free products for new users.
Olio: A food-sharing platform where individuals and local grocery stores list surplus food for free. It’s an excellent way to reduce waste and grab fresh items like milk, bread, and produce.
Too Good To Go: This popular app connects users with local coffee shops, bakeries, supermarkets, and restaurants offering food bags of unsold items at steep discounts.

London grocery shopping tips

Living in London presents unique challenges and opportunities for grocery shopping. Here are some simple tips to help you find the cheapest place for your weekly shop:

Shop outside central London: Central London stores can be more expensive. For better value, visit larger branches of Tesco, Sainsbury’s, or Morrisons in suburban areas for better deals and discounts.
Check out local markets: In areas like Southall and Peckham, local markets often offer fresh produce at lower prices than bigger supermarkets. These independent shops are a great option for budget-friendly finds.
Use loyalty schemes: Sign up for loyalty schemes like the Lidl Plus app or Tesco’s Clubcard to get extra savings and exclusive loyalty prices. It’s an easy way to cut costs on your regular shopping.
Go for own-brand products: Save money by choosing own-brand items over name brands. You’ll find quality alternatives for staples like milk, bread, and pasta at a fraction of the cost.
Shop for reductions: Look out for reduced-price items, especially in the evening. Many supermarkets mark down fresh goods nearing their expiry, so you can get special offer prices on everyday essentials.

Final thoughts: Cheap grocery shopping in London

For those searching for the cheapest supermarket in London, Aldi and Lidl offer great value in-store. For online shopping, supermarkets like Asda and Iceland provide affordable delivery options with low minimum spends. Asda’s delivery pass, in particular, offers significant savings on repeated deliveries, making it a great choice for regular online shoppers.

To stretch your budget even further, apps like Too Good To Go and Olio provide access to discounted or even free groceries, making it easier to save while reducing food waste.

Combining the best online delivery options with loyalty schemes can also enhance savings. With a little planning, you can make your grocery shopping more affordable, whether you prefer in-store shopping or convenient online deliveries.

Cheapest supermarkets in London comparison