Tesco planning 82 new stores

TESCO'S extraordinary plans for Britain's High Streets and shopping centres are revealed today. The £34bn company is set to open 82 stores in Britain this financial year - more than the other supermarkets chains put together - and has lodged planning bids for dozens if not hundreds more, the Evening Standard has learned.

Critics say the expansion is harming thousands of independent traders, and accuse the company of using bullying tactics to force through its plans.

The finding comes on the eve of spectacular Christmas trading figures expected to confirm that the pace of Tesco's relentless expansion shows no signs of abating.

Sales are forecast to be about up some 6% on last year, one of the best performances of any UK retail chain during a tough Christmas for shops. It compares with a fall of 0.4% at rival Sainsbury's and stalled growth of only 0.1% at William Morrison, owner of Safeway.

It also puts Tesco on course to become Britain's first £2bn-profit retailer. The prolific expansion means that the 2,000th British Tesco store will be opening its doors sometime next year or in 2007.

Tesco is also set to open 'non-food' stores selling its range of clothing as well as electronics, DVDs, CDs and books in a move seen as a direct attack on High Street chains such as Dixons and WH Smith.

This year's tally of new stores will include 17 out-of-town hypermarkets, called Tesco Extra. But the fastest growth of all is coming from the hundreds of town and village centre Tesco convenience stores springing up throughout Britain.

An Evening Standard survey reveals today that the company is using these outlets to charge higher prices than its traditional supermarkets. Our basket of 15 household items cost £22.07 at a local Tesco Express in London compared with £21.11 at a nearby superstore.

Campaigners fear Express stores are killing thousands of local traders who find it impossible to compete with Europe's most powerful retailer.

Sandra Bell, supermarkets campaigner for Friends of the Earth, said: 'Councils seem increasingly afraid of saying 'No' to this corporate giant. Stronger planning policies would help but instead of protecting local traders and giving local people a say, the Government seems more interested in giving the big supermarkets exactly what they want.'

Despite the criticism, the retailer is as hungry as ever for new space and believes there are many parts of the country that are yet to be 'Tesco-ed'. It is keen to increase its presence in wealthy central and west London where, historically, Sainsbury's and Waitrose have dominated.

Last year, it raised its profile in the capital's highest-spending districts by paying £53.7m for 45 Cullens, Europa and Harts convenience stores. These were converted to Tesco Express, taking the Tesco brand to 'Sainsbury country' neighbourhoods such as Chiswick and Notting Hill for the first time.

A Tesco spokesman said: 'What is often overlooked is how much Tesco brings to the community. We are creating 10,000 jobs a year. Often new stores are very good for local businesses because they attract new shoppers to the areas.'