Tesco developing concept store to compete with ALDI and Lidl
Channel News Asia reported that Tesco in the UK is developing a discount store concept intended to compete with ALDI and Lidl. Apparently, the store would be a separate banner with more limited inventory. Based on our experience, this will most likely fail – to operate a successful discount operation requires a different culture, which cannot be manufactured on demand. Coles’ failed in attempts to succeed in this market illustrate the point – Price Point fiasco, followed by the dilution and the destruction of the BiLo brand.