Tesco eyes 'department store' openings

TESCO, Britain's biggest supermarket chain, is understood to be planning to open a series of department store-style shops in an effort to rival high street giants like Debenhams, Marks & Spencer and Bhs.

The firm, headed by Sir Terry Leahy, is currently eyeing up big town-centre sites to house non-food ranges from jewellery and watches to household goods, as well as its groceries.

In a marketing document, it described the multi-level town centre stores as "a whole new concept", selling food, televisions, clothing, homewares and toys over two or three floors, connected by escalators.

The document, obtained by industry magazine Property Week, said the first of the stores is already planned for High Wycombe.

Tesco, which already commands almost a third of Britain's grocery market, said it was "aware of space constraints" for its out-of-town stores, but denied it was creating new in-town department stores, pointing out that the 60,000 square foot stores would be similar in size to Tesco Extra outlets.