Tesco is to open hundreds of “Pound Shop” zones within its biggest supermarkets to take on the discount stores.
The zones have been introduced to more than 60 Tesco stores and the retailer plans to increase this figure to nearly 300 over the next few weeks.
Products will be sold for as little as 50p, including kitchen towel, washing-up liquid and pet food. The strategy reflects the success of Poundland and other discount stores, which have hit the profits of established supermarkets. Poundland was founded in 1990 and has 450 stores countrywide; Poundworld opened in 2004 and has 200 stores; and 99p Stores has more than 200 outlets.
Paul Bangs, the buying manager for Tesco Pound Shop, said the company wanted to ensure that shoppers