Shopping basketThere's arguably never been as much competition in the supermarket sector as there is right now. As our spending power has diminished, many of us have switched supermarket to the likes of Aldi and Lidl, enticed by the promise of more for less.
Aldi, in particular, certainly appears to have upped its game to meet this new demand. A six-fold increase in profits, while Tesco profits fall for the first time in 18 years, plus Which's vote as Supermarket of the Year suggest it are getting it right.

Money-saving guide

Supermarket Sweep - Tips & Advice

Trouble at Tesco


But is it cheaper to shop at Aldi than Tesco? And with Waitrose pledging to match Tesco prices on branded goods, is it also a contender?

Price comparison


The goods I selected were aimed at feeding my family of four, which means there is an emphasis on fresh food, particularly fruit and vegetables. In each case the cheapest product available was chosen, although that may not have been part of the store's discount range.

Item

Aldi price

Tesco price

Waitrose price

Beetroot (six-pack)

0.44

0.44

0.85

Cucumber (whole)

0.69

0.80

0.80

Tomatoes (six-pack)

0.89

0.75

1.00

Cherry tomatoes (300g)*

0.75

0.98

1.07

Carrots (1kg)

0.98

0.92

0.66

Avocado (individual)

0.79

0.99

1.29

Grapes (500g)

1.59

1.49

1.99

Bananas (kg)

1.21

0.68

0.68

Clementines (600g)

1.29

1.50

2.15

Pears (four-pack)*

0.69

0.69

2.00

Broccoli (500g)*

0.59

0.85

1.00

Potatoes (2.5kg)

 1.69

1.65

1.50

Fresh fruit juice (one litre)

1.29

2.00

0.99

Cheddar cheese (250g)

2.39

1.70

2.66

Babybel (six-pack)

1.39

1.75

1.75

Milk (four pints)

0.98

1.18

1.18

Yogurt (individual 180g)

0.31

0.31

0.60

Butter (500g unsalted)

1.25

1.36

1.19

Eggs (six free range)

0.99

1.79

1.66

Ham (five slices)*

0.56

1.75

2.89

Chicken slices (eight slices)

0.89

2.00

1.59

Fusili (500g)

0.49

0.95

0.95

Penne (1kg)

0.59

0.60

0.95

Chicken breast fillets (two free range)

3.49

3.75

4.73

Beef mince (500g)

2.69

3.75

4.19

Fish fingers (10)

1.29

0.60

1.91

Scampi (250g)

1.75

1.25

3.99

Baked beans (400g tin)

0.32

0.26

0.40

Bread (wholemeal loaf)

0.69

0.75

0.80

Milk Chocolate Digestives (400g)*

0.59

0.41

1.10

Wheat cereal (750g)*

0.69

0.88

1.17
Total

34.20

38.77

49.49

*Exact comparison not available across three supermarkets so price has been pro-rata'd in one case

As you can see, Aldi is the winner when it comes to cost, with Waitrose a very distant third. But that's not the full story.

Thing is, I couldn't actually complete a full weekly shop at Aldi. It didn't stock products such as dishwasher salt and hummus that we would regularly buy. There was also a real lack of fresh meat and fish options, which is certainly not the case at Tesco or Waitrose.

False economies in a recession

  • 1. Using Appliances At Night
    <p> Consumers are often tempted to use appliances such as washing machines and dryers late at night when energy tariffs are typically lower. However a Fire Service representative said it was not advisable to leave a washing machine, tumble dryer or dishwasher running overnight since they are a fire risk because of their high wattage, friction and motors.</p> <div> &quot;The practice of leaving these appliances on after you have gone to bed, means if anything goes wrong, you are not in a position to do anything about it. Electrical faults have frequently caused fires that have proved fatal to those sleeping upstairs,&quot; the source said.</div> <div> But it is not just fire hazards a burst hose could mean the whole downstairs of your house is flooded resulting in a hefty insurance claim and undoubtedly increased premiums as a consequence.</div> <div> </div>
    1. Using Appliances At Night
  • 2. Changing utility suppliers
    <p> There is nothing wrong in itself in switching utility suppliers as if you do it properly you can reduce your bills. However if you are not careful you might actually increase your outgoings.&nbsp;</p> <div> If you don't establish the type of tariff that best suits your needs you could be throwing money down the drain. With some suppliers, for instance, you pay less for the energy you use during the night than the energy used during the day. However, you'll need to use about 20% of your energy consumption at night to really make a saving (cheaper tariff starts at 1a.m. and finishes at 8a.m.). For those on shift work this might be very useful but for others there may be little benefit and we have already talked of the dangers of running appliances when you have gone to bed.</div> <div> Fixed or capped price plans offer a set price for a period of time (usually 18 months to 2 years) but sometimes this includes a premium on the supplier's standard unit rate.</div> <div> Finally, be wary of sales people who call at the door and try to talk you into switching to their company. It is just as easy to switch online yourself when you have time to make a considered and non-pressurised decision.</div> <div> </div>
    2. Changing utility suppliers
  • 3. Avoid panic share selling
    <p> When stock markets go into freefall &ndash; and we have seen plenty of that over the last 12 months &ndash; there is always a tendency to try and save money by selling shares quickly or just trying to move investments to another provider. But some times all you are doing is incurring extra trading costs or charges on fund switches. Unless you are totally convinced that the only way is down, it is usually best not to sell shares when they have hit rock bottom &ndash; all you are doing then is crystallizing a loss. It makes sense to plan a less knee-jerk exit strategy.</p> <div> </div> <div> And as far as funds go, investors have a habit of chasing the latest theme and piling in at the height of the market only to see their investments fall as sanity returns to proceedings&nbsp;</div> <div> Glasgow-based IFA Alan Dick believes investors are getting severely short changed by active fund managers and he insists investors are far better off in low-cost Index tracker funds.</div> <div> &quot;This idea that fund managers can beat the market and pick out the winners just doesn't stand up to close scrutiny. Constantly switching fund providers only piles up extra charges and costs and offers no added value.&quot;</div> <div> </div>
    3. Avoid panic share selling
  • 4. Payment protection insurance
    <p> In a recession it might seem logical to take out insurance policies in case money becomes tight but policies such as Payment Protection Insurance offer little in the way of reassurance and usually just leave a large dent in your wallet.</p> <div> PPI can be ridiculously expensive. According to consumer campaigner Which? adding PPI to a &pound;7,500 five-year loan could cost an additional &pound;2,000-&pound;3,000. When you take out a personal loan or a finance agreement, PPI is typically tagged on as an optional 'single premium' policy. This means a lump sum representing the cost of the insurance is added to the amount you've borrowed. The upshot is you end up paying interest on the insurance premium and your loan.</div> <div> To make things even more galling, most PPI policies only last for five years, so if your loan or finance agreement term lasts for longer than this, (say it is for a car or a house) you'll still be paying interest on insurance that has long since expired.</div> <div> </div>
    4. Payment protection insurance
  • 5. Extended warranties
    <p> Anyone who has ever bought electrical goods at a major retailer will have been subjected to the hard sell of 'have you considered taking out an extended warranty?' Then follows the spiel about how you will have piece of mind if anything goes wrong blah, blah, blah&hellip;.</p> <div> In theory it sounds like a way of saving you hefty repair bills in the futuer but in the vast majority of cases extended warranties are overly expensive and not necessary. With most electrical goods you have a legal right under guarantee for the retailer to repair or replace faulty goods within a specified amount of time &ndash; typically 12 months. The only conceivable reason for buying an extended warranty would be for something like accidental damage cover - but in most instances that would be covered under a typical home contents insurance anyway.</div> <div> Extended warranties are of course designed to cover goods for a longer period than the 12-month guarantee the product is sold with. They normally cover the three or five years, after the guarantee has run out. But you are not obliged to take out this insurance when you buy the goods nor do you have to buy the policy from the retailer selling you the item. You can pretty much bank on the fact that the in-store policy will be more expensive than any stand-alone policy as the retailer will take a commission charge. If you really feel you need an extended warranty at least shop around for it.</div> <div> </div>
    5. Extended warranties
  • 6. Health insurance plans
    <p> You might be paying lower premiums on your health insurance but that's not much good if the policy exclusions mean you are denied the treatment you suddenly find you need. Going for a policy based on budget alone rather than specific levels of cover could prove a false economy. One of the most common exclusions is home care or private nursing &ndash; you may think you are covered but the small print says otherwise. If you have to economise on personal health plans, make sure you understand exactly what you are giving up under the terms of your policy.</p> <div> </div>
    6. Health insurance plans
  • 7. Chasing better savings rates
    <p> With interest rates at record lows, it seems like a no brainer to move your savings to the best rates currently offered on the market. But moving money in this way will often only have short term benefits unless you are prepared to continue this process on a regular basis.</p> <div> For instance the ING Direct Savings account is currently one of the best instant access deals on the market offering a variable rate of 2.75% for new customers including a 2.22% gross pa bonus fixed for 12 months. But after the 12 month period customers go onto the standard variable rate currently 0.5%. If you don't then move on to another provider returns on savings will come down pretty sharply.&nbsp;</div> <div> One obvious plus with this account is that you can move your money when you like with no penalties or restrictions.&nbsp;</div> <div> However the trade off for the decent introductory headline rate is that you have to bank entirely online or by phone there is no branch or post facility available.&nbsp;</div> <div> There is absolutely nothing wrong with this account but the restrictions on access (no branch or post) may mean you don't use the account efficiently. And apathy to switch to another account provider after the introductory period has ended might mean your money gets little in the way of improved returns going forward. The onus is on you the saver to keep moving your money around to get the best rates.</div> <div> </div>
    7. Chasing better savings rates
  • 8. Paying on credit
    <p> </p> <div> It might seem like a way of dealing with an immediate cash flow problem but loading up on your credit card to pay your way out of recession-related problems could prove a very bad call in the longer term.</div> <div> Debt counselors frequently hear cases of people paying for their mortgage on their credit card &ndash; possibly because they have lost their jobs so there is briefly no income coming into the house. It might seem like a simple solution to a short-term cash flow problem but what if the cash flow problem is not quite as short term as you imagine?</div> <div> Using credit cards in this way is one sure way to rack up debts fast and accumulate interest on what you owe. If you have problems paying a mortgage or any other regular outgoings, contact your mortgage lender immediately and talk through the problem with them.</div> <div> </div>
    8. Paying on credit


Taste comparison

In terms of taste, the Ward family say Aldi came last, with Tesco in second and Waitrose top. Aldi's grapes were watery, the scampi was made from strange pink globules that bore little relation to seafood, the ham and chicken slices were tasteless and slimy, and the beef mince was fatty.

Having said that, the rest of the food was fine, with the general consensus that it was no worse than Tesco's. But there is definitely a very discernable difference in quality between Aldi and Waitrose. It arguably isn't as great as the 1.4 ratio in price, but personally I wouldn't ever do all my shopping at Aldi. It's great for bulk buying store cupboard items and other non-fresh products, but its fresh lines, particularly meat and fish, aren't strong enough yet. However, many people are obviously converted.


I'd like to address one final area, although I appreciate when money's tight it's something you might not consider, and that's Fairtrade and free range food. It never ceases to amaze me how Tesco, in particular, has so little fresh Fairtrade and free range produce available. And that's a major reason why I would never do my entire weekly shop there.

In fact, apart from its multi-buy deals and alcohol discounts it's difficult to see where Tesco really scores these days.

The result

Following this (very non-scientific) experiment, my ideal combination is bulk buying non-fresh food every few weeks at Aldi and buying fresh each week at either Sainsbury's (which does better on the Fairtrade/free range front) and Waitrose. But if Aldi does step it up in the fresh section, it will be a serious contender.

Where do you buy your food shopping? Do you shop around or stick to one supermarket? Let us know in the Comments section below.

Save money on shopping

  • 1) Know the price of everything you buy
    <p> </p> <p> This takes time, but once you know the cost of a phone call, putting the dryer on, or a bag of potatoes, it enables you to judge far better how much you can afford to consume.</p>
    1) Know the price of everything you buy
  • 2) Shop around
    <p> </p> <p> Once you know the base price, you are in a position to keep your eyes open for a better offer. If you see a discount you can judge for yourself whether it actually constitutes a bargain. For bigger things like utilities it enables you to do a proper price comparison and see if you can cut your bills.</p>
    2) Shop around
  • 3) Trade down
    <p> </p> <p> Don't just assume that the premium range is better, try the every-day brand, or even the basic version and see if you spot the difference. Likewise, consider trading down your supermarket from one of the big players to local markets or discounters like Aldi.</p>
    3) Trade down
  • 4) Plan
    <p> </p> <p> If you plan what you buy to match what you actually cook and eat then not only will you be able to budget far more effectively, but you'll also waste much less and find your money goes further without you having to try.</p>
    4) Plan
  • 5) Think creatively
    <p> If you can't think of a way to get your meat for less, consider a vegetarian day once a week. If you can't find petrol any cheaper, then work on making your driving as efficient as possible. The more you can think of clever alternatives the less you will have to make painful cuts to make ends meet.</p>
    5) Think creatively

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