Tesco is rumoured to be working on a secret plan to launch a new budget supermarket brand, reports suggest.According to The Sunday Times, it is the supermarket giant’s attempt to take on Aldi and Lidl, which were recently named as the UK fastest growing food stores.
Figures from market researcher Kantar Worldpanel showed that Lidl’s market share grew by 16.3% whereas Aldi’s increased by 16.2%. Tesco’s market share fell by 0.3 percentage points but it proved to be the fastest growing of the ‘big four’ supermarkets, with sales up by 2.6%.
It has been reported that the new chain will offer a limited range compared to a typical Tesco store. Tesco already has a bulk-buy Costco-style brand in Thailand, and it is reported that this style of store may be a second option.
It is believed that Tesco has hired advisers from Boston Consulting Group to help work on the plans, but it hasn’t officially commented on the rumours.