Tesco is considering a swoop for a raft of former Netto stores put up for sale by Asda.
The Office of Fair Trading last month told Asda it needed to sell 47 Netto stores to gain regulatory clearance for its £778m takeover of the business.
Tesco commercial director Richard Brasher has indicated the UK’s largest supermarket could bid for the stores. But he said a bid for the outlets would not represent a cornerstone of Tesco’s plans to expand.
Brasher also pledged to reduce Tesco’s dependence on promotions.
“Customers like promotions but they prefer a little more predictability,” he told The Times. “I would hope the industry becomes less promotionally driven and we will play a part in that.”
He was speaking after figures from Nielsen yesterday revealed 37% of grocery sales in September had been via deals – the highest proportion on record.
Asda to offload 47 Netto stores to placate OFT (23 September 2010)
Will profits be cannibalised in Tesco’s race for space? (analysis; 4 September 2010)