Is Tesco’s discount brand launch imminent?
Speculation that Tesco is about to launch a new discount retail brand has kicked into gear again, following the announcement of an "exciting" press event at a company-owned premises next week.
12 September 2018
With Aldi and Lidl gaining market share in the UK (as with everywhere), the rumours that Tesco is about to launch a new retail brand are mounting. The talk first emerged some time ago with job ads appearing on Linkedin and now the retailer – biggest in the UK by a long shot – has invited reporters to a briefing by CEO Dave Lewis at a company-owned site in Cambridgeshire on September 19.
According to reports, Lewis intends to share “some exciting news” but no further detail was given about the event.
It’s a smart move by Tesco. According to Kantar Worldpanel’s ongoing research, it is the UK’s leading supermarket, with 27.4% of the market. This represents a reduction from the same period in 2017. The UK’s other major supermarkets – Sainsbury’s, Morrisons and Asda – all experienced slight drops in share over the year while Lidl and Aldi have grown their combined share to 13.1%, representing a 0.9% year-on-year increase.
In other words, the German discounters are taking customers left, right and centre and if it can’t compete on price, Tesco appears to have decided if you can’t beat them, join them!