The Channel 4 TV programme "Dispatches" suggested this week that a typical family could save up to £2,000 a year on their food bills by shopping at one of the discount supermarkets instead of the larger and more well known ones.

The following aricle is from a recent edition of the "Guardian".

Aldi logo 200 pixLidl logo

Cash-strapped consumers are increasingly turning to discount supermarkets to cut the cost of their weekly food bills.

New data from market research group TNS Worldpanel - which tracks goods going through the tills of the grocery sector - shows discounters Aldi and Lidl are expanding far faster than the big four supermarket chains.

Sales at Aldi in the 12 weeks to June 15 were up 21% on last year's levels as shoppers trade down to cheaper goods. Aldi stocks just 1,000 own-label brands.

Sales at rival discounter Lidl are up 13% year-on-year while Iceland is up 12% as frozen food, with its cost-conscious image, makes a comeback.

The sales growth at the discount specialists is far higher than that being witnessed by Tesco - up just 5.1% and Sainsbury's, up only 4.3%. They are both lagging growth in the overall market - up 6.2% - and are therefore seeing their market shares whittled back.

Morrisons and Asda - up 8.1% and 7.5% - are performing best among the biggest grocers.

The figures underline the swing in consumer behaviour as the effects of the credit crunch bite.

Sales of organic produce, which had been soaring last year, are now showing only single digit growth, while value products are flying off the shelves.

Sainsbury's last week said that sales of its Basics range of products were soaring. Sales of its lowest-priced frozen peas, pasta shapes and rice were up by 100%-300% and the value range is being extended.

All of the grocers are currently running advertising campaigns focusing on their price promotions and some 30% of goods going through the tills are now on offer - up from 20% a year ago.

What is your experience of shopping at either of these two firms?