Cheapest supermarket: Aldi could cut prices in response to discount rival Jack’s

Aldi will reduce prices if necessary in order to undercut new rival Jack’s, its boss has pledged.

Tesco-backed Jack’s opened its first two stores last month to fight the rapid growth of the German discount supermarkets.

And Aldi UK & Ireland CEO Giles has responded by promising shoppers a better deal than Jack’s as Aldi “will never be beaten on price”.

He added: “If we need to reduce retail prices, we will.”

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Is Jack’s cheaper than Aldi?

There’s no question that Jack’s is cheaper than Tesco, provided you aren’t after specific brands of course.

But how does it fare against Aldi & Lidl?

We analysed a handful of essentials at the time of its launch and found there wasn’t much difference between Jack’s and the other discount supermarkets.

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However, retail industry magazine The Grocer compared a basket of 35 items and found Jack’s to be almost £2 cheaper than Aldi.

Given that Aldi will invariably be cheaper on some items and more expensive on others, the “cheapest supermarket” for you will probably depend on your specific shopping list.

However, Aldi – and Lidl – have enjoyed such rapid growth by smashing their rivals on price.

A survey by The Grocer in August found Aldi was over 20% cheaper than the ‘big four’ supermarkets – Tesco, Morrisons, Asda and Sainsbury’s.

It’s unlikely to match that margin with Jack’s, but it does make price cuts more likely, and that would be good news for shoppers.

Before you go: make sure you read our tips for saving at your favourite (or nearest) store.

• Tesco
• Sainsbury’s
• Asda
• Morrisons
• Aldi
• Lidl
• M&S

And take a look at our roundup of the week's best deals at all the major supermarkets.