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