Tesco planning new discount chain to rival Aldi and Lidl

  • Print
  • Share
  • Comments (1)
  • Save

Tesco is planning to launch a new discount chain to compete against rivals Aldi and Lidl, it is being claimed.

The supermarket is said to be developing a separate brand that would match the German discounters on price and offer a smaller range than average Tesco stores, a report in The Sunday Times said.

Tesco has reportedly hired advisers from Boston Consulting Group to work on the plans. It is believed to have asked own-label suppliers to sign non-disclosure agreements before contributing to the new project.

Tesco declined to comment on the report. 

However, announcing Booker boss Charles Wilson’s new role as Tesco’s head of retail and wholesale in the UK and Ireland last week, the company said it planned to “develop new formats to better serve customers”.

The report added that the new discount brand would run separately from the One Stop convenience chain, which has about 900 stores.

Growth at discounters Aldi and Lidl has continued to rise over the last few years, with Aldi overtaking the Co-operative Group in 2017 to become the UK’s fifth-largest grocer (Kantar Worldpanel).

A report by The Guardian has also speculated that Tesco has been considering a second option, which would involve a new “Costco-type bulk purchase brand”, similar to a business the supermarket already runs in Thailand.

Readers' comments (1)

  • Tesco ran discounter called Victor Value in the 80's, subsequently sold to Bejam.Couldn't compete with Kwik Save then so don't hold out much hope of them competing with the Germans. It's laughable, if true, that the mighty Tesco needs the help of BCG to launch a chain of limited range stores.

    Unsuitable or offensive? Report this comment

Have your say

These comments have not been moderated.

You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment.

Any comment that violates these terms may be removed in its entirety as we do not edit comments.

If you wish to complain about a comment please use the “report this comment” facility or email groceremails@wrbm.com

Mandatory
Mandatory
Mandatory
Mandatory

Related images

  • Tesco Extra
  • Print
  • Share
  • Comments (1)
  • Save
Sign in

Newsletter Sign-up

I wish to receive the following newsletters:

FOLLOW US