Tesco to Launch Discount Stores In UK

Supermarket group Tesco, Britain’s biggest retailer, will be opening a chain of discount stores in the U.K.

Reuters reported that the “cut-price” stores will enable Tesco to take on discount rivals Aldi and Lidl. The company is working on a separate brand that will cost less, but offer a more limited range than what’s sold at its main stores.

Recent data showed sales at Tesco grew by 2.6 percent in the last 12 weeks, but all four major supermarkets lost market share to Aldi and Lidl.

Tesco has been working on new initiatives to boost sales. Last year, it launched both a one-hour and a two-hour delivery option in London via its Tesco Now app on both Android and iOS. Customers are limited to 20 items or fewer for delivery by moped.

Last July, it introduced its contactless loyalty card, Clubcard, allowing customers to add points to their cards without a keychain card. The company has also made updates to its loyalty Clubcard, giving customers the options to sign up in the store and giving access to vouchers at checkout.

And last month, a competition regulator approved its 3.7 billion pound ($4.95 billion) takeover of wholesaler Booker.

Tim Linssen, Quiqup’s co-founder and head of product, commented on the changing retail landscape and the need for tech integrations. “As consumer expectations change, retailers of all sizes and across verticals will be expected to offer flexible, efficient and affordable delivery to their customers. Quiqup partners are able to do this quickly and easily by integrating our technology and infrastructure into their existing systems.”

Currently, Tesco has a 28 percent share of the British grocery market, while Aldi’s sales grew by 16.2 percent and Lidl’s by 16.3 percent.

Tesco had no immediate comment on the report about the discount stores.