In September the super-market added 350 discount brands to sit between its Value and own-label ranges. How-ver, according to TNS, Tesco's growth in September slowed to 3.5%, compared with a 14% rise posted by German discounters Aldi and Lidl.
Colin Mechan, creative director at branding agency FLB, believes the strategic shift is leading to confusion among shoppers. 'Tesco is trying to get consumers to buy into the discount brands philosophy, but people don't understand where they fit with Tesco's other ranges,' he said.
Another problem is that the public does not recognise Tesco as a discounter, according to Nick Gray, managing director at retail specialist Live & Breathe.
'The public is more aware of other retailers that have been in this space for longer. This in itself makes Tesco's overt discount stance a difficult one for people to find credible,' he said.
A spokeswoman for Tesco denied that the discount products are performing poorly, adding that the range was launched to give consumers more choice and it is still 'early days'.
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