It looks like an Asda, claims to be the cheapest retailer around - and even does an impressive line in non food. But all is not quite what it seems at this supermarket in Tenerife in the Canaries.

News of the store, spotted by a reader of The Grocer while holidaying in the resort of Playa de las Americas, fuelled speculation that Wal-Mart had secretly extended the reach of Asda outside the UK for the first time.

But a spokesman said the store was not part of the Asda estate, and an investigation would be launched immediately.

He added: "Our legal team are taking this very seriously. They have said they all need to go to Tenerife personally to check out this store.

"They insist that is the standard practice."