Tesco to open budget stores to compete with Aldi and Lidl

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Mid-market stores like Tesco, Asda, Sainsbury’s and Morrisons are losing out to cut-price rivals

Supermarket giant supermarket Tesco is to open a chain of budget stores to compete with cut-price rivals Aldi and Lidl.

The new, smaller supermarkets, which will open under a difference name yet to be announced, will have less variety than the main Tesco stores.

And they will focus on budget and discounted products in a similar price range to the items sold at Aldi and Lidl, reports DevonLive .

A decade ago stores like Tesco seemed unstoppable. But shoppers experiencing squeezed budgets following the financial crash of 2007 switched their weekly shop to Tesco’s cheaper German rivals.

The new Tesco will use similar in-store tactics to Aldi and Lidl. There will be a smaller range of items, products will be displayed in their boxes or on pallets and goods will have multiple barcodes to speed up scanning at the checkouts.

The different ways of working reduce storage, transport and staff costs.

Tesco has declined to comment on the reports. Tesco has a 28% share of the UK grocery market, Aldi 6.9% and Lidl 5%.

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