THE supermarket price war is set to intensify after a study found Lidl was almost a third cheaper than the major chains.

The German low cost store was included in The Grocer magazine's weekly survey for the first time, which found that it sold a basket of common groceries for 29 per cent less than Tesco.

Lidl also scored 78 out of 100 for customer service at its High Wycombe store in Buckinghamshire, just one point behind the week's winner, the Tesco Extra in Streatham, South London.

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It came level with Waitrose and beat Asda, Morrisons and Sainsbury's. A weekly shop at Lidl cost £49.23, compared with £57.83 at Morrisons, £59.95 at Asda, £63.73 at Tesco, £64.50 at Sainsbury's and £71.84 at Waitrose.