Tesco Gears to Wrestle Market Share from Poundland and Poundworld

Ailing supermarket giant Tesco has launched a new tactic to regain its falling market share. The retailer has unveiled 'pound zones' - dedicated areas of its outlets that will offer non-food categories such as Health & Beauty plus pet items for as little as 50p.

These zones have already been rolled out in around 60 stores, and it is reported that Tesco has plans to increase this figure to 300. Additionally, Tesco has launched new in-store supporting marketing to attract consumers, including header boards with the name 'discounter prices'.

Tesco aims to combat the rise of chains such as Poundland and Poundworld, however analysts such as Planet Retail have raised concerns over this strategy by saying that "trying to become the discounters isn't the answer", because any move downmarket is more likely to play into the hands of long-standing rivals such Sainsbury's.

Overall, Tesco is doing its best to boost falling revenues - sales at their stores which have been open for more than a year dropped by 1.3% last year, while profits have seen their second annual decline by 6% to £3.3bn.

Tesco has also announced a multi-million pound investment in lowering its food prices to combat discount grocers Aldi and Lidl, both of which are currently seeing double-digit sales growth.

« return to news section

Get a Quote



A key element to ensuring that our business grew to its maximum potential, required good search engine exposure, across a number of different "key search words". Having launched our site, we found it near impossible to obtain a high ranking in any of the major search engines, and had to rely on pay per clicks. ... Read more...