Supermarket may launch its own discounter chain
TESCO may be looking to get in on the discounter game.
A Sunday Times report has claimed Tesco has a secret plan to launch its own chain of stores operating on the discounter model, with fewer lines than a supermarket but at a lower price.
Multiple media outlets have now reported on the plan, which would see Tesco look to mimic Aldi and Lidl’s success. The German discounters are rapidly picking up marketshare in the UK with both enjoying double-digit year-on-year growth.
Reports claim the retailer has hired advisers from US management consulting firm Boston Consulting Group to work on plans for the new brand.
Rumours of Tesco’s secret plans to launch a discounter brand come as the retailer looks to get its acquisition of wholesaler Booker over the line.
Booker shareholders were due to vote on Tesco’s £3.7bn takeover as Scottish Grocer went to press, following a week in which some big names came out against the deal.
Shareholder advisory firms Glass Lewis and Institutional Shareholder Services both advised their clients to reject the deal in the week leading up to the vote. Institutional Shareholder Services said the deal would have “limited potential benefit” for Booker investors.