The pilot easyFoodstore store – opened in London – offers a limited and basic range of food and drink items “at rock-bottom prices”, said the firm.
In a clear bid to battle discount retailers Aldi and Lidl, the store’s introductory offer will price all items at 25p throughout this month.
Budget food items included: noodle snack, chicken pizza, Bombay mix, vegetable oil, digestives and spaghetti hoops.
Vegetable and fruit products
Vegetable and fruit products on sale spanned: button mushrooms, red kidney beans and peach slices.
Drink products included: orange juice, orangeade, and ground tea and coffee.
The new store operates under the banner: “No expensive brands. Just food honestly priced.”
The low-price entrepreneur said: "This is another way the easy brand can serve the less well-off.
“Given my experience in distributing food for free in Greece and Cyprus, this is a more commercial attempt to sell basic food for 25p per item to those less well-off in the Park Royal area [of London]."
- easyFoodstore store
‘More commercial attempt’
Haji-Ioannou first revealed plans to open a discount food store three years ago and builds upon experience gained through running a food charity in Greece and Cyprus.
The new discount store project – which followed the UK market success of the limited range discounters – will pose another challenge to Britain’s big four retailers: Tesco, Asda, Sainsbury and Morrisons.
The big four are already battling intense price competition from the established discount stores. They are also challenged by significant changes in buying habits, as shoppers appear to be ditching the traditional weekly shop in preference for more purchases online, discounters and at convenience stores.
Early this week, Morrisons unveiled a new range of price cuts – to be financed partly by exploiting savings in its food manufacturing plants.
The consultant’s view
“While the launch of EasyFoodStore may suggest a fresh rival for Aldi and Lidl has appeared, the venture will have a long way to go before it can match the relationship the German pair have with their suppliers, especially since the new store is offering food at alarmingly low prices."
- Connor Campbell, a senior market analyst at www.spreadex.com