business news in context, analysis with attitude

Reuters reports that Tesco will unveil a new discount format next week in the UK, designed to help it blunt the impact of Aldi and Lidl, which have continued to nibble away at traditional retailers’ market share there.

The first store in the mini-chain will be in Chatteris, in Cambridgeshire, eastern England, on Sept. 19. There could be as many as 60 of the new format stores - all converted from existing Tesco stores that are underperforming or seen as having greater potential if they offer deeper discounts.
KC's View:
Takes a lot of discipline to prevent the infrastructure and operational procedures that have been used in the mother chain - and that made it vulnerable to attack - from bleeding into the new entity. It can be done … but it can’t just be a marketing exercise. It has to be tangible.