Tesco opened a new front in the ongoing supermarket price war

In a sign that the discounters' growing popularity is starting to concern Tesco, the retail giant will start to match Aldi and Lidl's prices on over 2,000 product lines.

Aldi and Lidl are known for selling a
limited range of products from sparse stores at low prices. But the
discount prices and the German discounters have become an unexpected
hit with middle-class shoppers. In a move designed to emulate the
no-frills, European feel of the discounters, Tesco has launched new
own-label brands.

Tesco, which has a UK market share of
30pc, has traditionally focused its attention on the pricing
activities of its "Big Three" domestic rivals – Asda, J
Sainsbury and Wm Morrison. The fact that it is now taking the threat
of rivals such as Aldi, which has a market share of just 3pc, so
seriously shows how successful the discounters have become.