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The Grocer: Loyalty will be key at the new discount Tesco

Speculation that Tesco has a new discount store format in the works may have taken some by surprise. But it has shown that it has learned to develop and run new formats.

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Speculation that Tesco has a new discount store format in the works may have taken some by surprise. But it has shown that it has learned to develop and run new formats. The thing that most interests me is how well it can bring its customer data skills to bear, to build an advantage in this notoriously competitive space.
 
If Tesco really is considering a move into the discount space, then its long history of diversifying the positioning of its store formats should serve it well; the success of Tesco Express, One Stop and Tesco.com are great examples. This move into Aldi and Lidl’s territory could prove similarly strategic.

Read the rest of Tim's article in The Grocer here, in which he discusses the methods through which Tesco could engage with their proposed discount-format customers.