Tesco is working on a secret plan for a new discount grocery chain to take on Aldi and Lidl, senior industry insiders have told The Sunday Times.
Britain’s biggest supermarket is understood to be developing a separate brand that would match the German insurgents on price, and offer a far more limited range of products than the average Tesco store.
Aldi and Lidl continue to take market share from the mainstream grocers. They now control a combined 11.9%, putting them ahead of Morrisons.
A story in the Telegraph reports that City analysts have warned the plan by Tesco could prove as disastrous as Sainsbury’s attempt to revive Netto, the ditched discounter brand.