Tesco's plans to expand its portfolio of Tesco Express forecourt stores have been met with concern by independent retailers. The multiple has struck a deal with Esso to open supermarkets on 150 sites during the next three years. But symbol groups have warned that this could further damage the independent retail sector. Barry Wallis, retail development controller at Spar, said Tesco's announcement reinforces the argument that branding was becoming vital to survival. And he said independent retailers should now take the opportunity to team up with a symbol. "This latest development endorses what Spar has been saying for a long time about the branding of forecourt food stores. "But what really concerns me is that independent forecourt retailers could really start to lose out." Mace also warned against complacency in the sector and said Tesco could pose a major threat to independent retailers ­ not only forecourt retailers, but those within striking distance of a forecourt store. Compared with its competitors, Tesco has taken its time in establishing a foothold in the forecourt sector. Safeway, Somerfield, and Budgens have already invested substantially in the forecourt market and each aim to continue growing their share. Tesco first teamed up with Esso in 1998 when it announced plans to open 10 sites ­ signalling the roll out of its Tesco Express format. Eight joint trial sites were set up, but since then little has changed. However, this latest advance shows Tesco's determination to develop a niche in this market. Tesco will manage the running of the 150 sites and they will be branded Tesco Express. lSee analysis, page 18 {{NEWS }}

Topics