UK's Tesco is planning a chain of discount stores: Sunday Times

 

Reporting by Michael Holden; Editing by David Gregorio, Reuters

Feb 10, 2018

 

LONDON (Reuters) - Supermarket group Tesco, Britainís biggest retailer, is planning a chain of cut-price stores to counter the growth of discount rivals Aldi and Lidl, the Sunday Times newspaper reported.

 

The paper said Tesco (TSCO.L) was understood to be developing a separate brand that would match its German competitors on price with a more limited range than in its main stores.

 

Tesco had no immediate comment on the report.

 

Data from research group Kantar Worldpanel on Tuesday showed sales at Tesco grew by 2.6 percent in the last 12 weeks but all of Britainís four biggest supermarkets had lost market share to Aldi ALDIEI.UL and Lidl.

 

Tesco has a 28 percent share of the British grocery market. Aldiís sales increased by 16.2 percent and Lidlís by 16.3 percent, boosting their respective market shares to 6.9 percent and 5 percent.

 

Tesco has tightened its hold on the nationís food market after the competition regulator last month cleared its 3.7 billion pound ($4.95 billion) takeover of wholesaler Booker (BOK.L)...

 

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