The buying director at discount retailer Aldi has predicted the imminent launch of a new discount range at Tesco’s will prove to be a washout.
Speaking to the The Times, Tony Baines said he thought Tesco would be able “to compete with (Aldi) on price but not on quality”.
“You’d really expect a company like Tesco to have its own agenda; it does feel to me that they are really struggling to hold on to their customers,” he added.
Recent data from market analysts TNS Worldpanel showed that Aldi had posted growth of 19.8% for the 12 weeks to 10 August 2008. Lidl had posted growth of 12.3%.
TNS Worldpanel director of research Ed Garner said retailers with “a clear price message” are posting “the strongest performances”.
Growth at Tesco and Sainsbury’s was described as “behind the total market”.
