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Tesco to Open a Chain of Budget Stores to Rival Lidl and Aldi

February 12, 2018, 12:00 PM
  • The company is developing a separate branch of stores
  • Lower prices and a more limited range expected
  • Responding to the rise of discount stores
Tesco is taking on budget rivals Aldi and Lidl. Image: Getty

Tesco is understood to be developing a new chain of budget supermarkets that will have lower prices, to rival Lidl and Aldi

The Sunday Times claims that the supermarket giant is taking measures to keep up with the growth of the discount stores, whose cut prices have grown in popularity over the past few years.

Aldi has also been crowned the UK’s favourite supermarket, whereas Tesco faced heavy criticism last month for changing its’ Clubcard rewards program, only to backtrack the next day.

Tesco will aim to run the new chain of supermarkets similarly to Aldi, by cutting costs whenever it can.

It is predicted that this will include having a smaller range of products, and a limited range of items.

This cuts cost of storage and transportation, as well as meaning the retailer won’t need huge stores with a higher running cost.

The Co-Operative is also trying to keep up with the rise of budget supermarkets, by cutting the costs of its’ products by up to 40%.

Recent data from research group Kantar Worldpanel this week showed sales at Tesco grew by 2.6% in the last few weeks, but that all four of Britain’s biggest supermarkets has lost market share to Aldi and Lidl.

Tesco has a 28% share, but Aldi and Lidl have increased their shares to 6.9% and 5% respectively.

Would you shop at a budget version of Tesco? Let us know in the comments!

KarenMasseyover a year ago

our local tesco has limited stock - similar to a small Lidl but not prices to match. All of the Co-ops near us have closed . The nearest Aldi is nearly 15 miles away. So where should I shop ?

alison256over a year ago

I think there is way too much choice when shopping, the supermarkets should be smaller, less time spent in deciding 😊

UrsulaDiasover a year ago

I would certainly suss it out. We have 2 Co-ops within 15 minutes walk,another one with a 5 minute bus ride and yet another with a 25 minute bus ride. They are more expensive than the bigger supermarkets and I really only shop there when they have special offers of the things I want.

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