Tesco’s secret plot for cut-price chain to challenge Aldi and Lidl

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.

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