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For grocery retailers in Europe, intense competition from hard discount formats like Lidl and Aldi is an established part of the competitive landscape.
He plans to offer prices below those of the hard discount grocers Aldi and Lidl by selling non-branded staples in basic surroundings, possibly with limited opening hours.
It is the second-largest retailer globally by sales, behind Wal-Mart Stores, and the largest in Europe, with a range of formats from hypermarkets to hard discount and local convenience stores.
The most frequently cited evidence for this in the UK is the increasing appeal of the hard discount food retailers with Aldi now one of the top 6 UK supermarkets and Tesco and Sainsbury's suffering losses in share, profitability and property values.
The underlying and emerging message that cheaper generics are like "hard discount" low-quality products in mass markets compared with originators and so patients should be willing to pay more for "brand" products is simply false: generic drugs are equivalent to originators, so a price difference can hardly be justified on reimbursed drugs.
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As scholar Rachel Black notes in her book Porta Palazzo: the Anthropology of an Italian Market, outdoor markets were threatened by the diffusion of supermarkets, hypermarkets and hard discounts.
Carrefour proposed a partial sale of its property in March, along with the sale of Dia, a successful Spanish hard-discount chain.
But Lidl may not be so out of place, since middle-class people are changing their shopping habits to buy at least basic items at hard-discount stores.
The hard-discount stores, Aldi and Lidl, continued to undercut them, gobbling up market share, while falling food prices ate into their profits.
Just as Ryanair and easyJet are cautiously adding some of the features of the full-service airlines (such as flexible tickets for business travellers), so as to continue demolishing them, the hard-discount grocers are compromising a little on their principles, all the better to keep grabbing customers from Tesco and its peers.
Two early beneficiaries of consumers' changing mood, on the other hand, have been Aldi and Lidl, big German hard-discount supermarket chains which are expanding across Europe and eating into the market share of established giants such as Tesco and Carrefour.
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