EasyJet founder Sir Stelios Haji-Ioannou is launching a low-cost food retail business to undercut low prices offered by budget supermarkets Aldi and Lidl.
The entrepreneur announced plans for a pilot site in Croydon as his easyGroup company aims to cash in on the very cheapest end of the grocery market.
EasyJet founder Sir Stelios Haji-IoannouThe new business will focus on a limited range of tinned and packet foods.
It has set up a website, easyFoodstore.com, which promises to be "coming soon".
Sir Stelios said: "I have a feeling that there is a gap in the food retail market – a niche below some of the current budget operators such as Aldi and Lidl.
"Concentrating on affordable, basic 'no-brand-name' packet and tinned foods at bargain prices, easyFoodstore underlines the need for additional reliable day-to-day provision of basic foodstuffs."
He added that no other details had been decided yet.
Sir Stelios said that the business could be expanded next year by taking advantage of weak property prices to buy up freehold retail sites.
The new grocery will aim to compete with supermarkets like AldiRecent retail figures suggest the UK grocery market is becoming increasingly polarised with the strongest sales gains coming at the top and bottom ends - with the likes of Waitrose doing well on one side and Aldi and Lidl on the other.
Sir Stelios said the venture was still at a very early stage, with a pilot store to open on the ground floor of a nine-storey building easyGroup has acquired in Croydon which is also expected to house its easyHotel, easyOffice and easyGym businesses.
The entrepreneur remains a major shareholder in easyJet but has recently objected to management plans to buy a fleet of new Airbus aircraft, threatening to take directors to court if the move destroys shareholder value.
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