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Tesco Signs Shop-in-Shop Deal With Arcadia Group

Britain’s biggest supermarket chain Tesco is taking its “Every Little Help” slogan a step further and turning some of its shops into department store-like destinations in a bid to tempt more shoppers to spend.

The retailer has signed a deal with Sir Philip Green’s Arcadia Group to bring some of the behemoth’s brands into five of the supermarket’s biggest stores.

Dorothy Perkins, Burtons and Evans will open shop-in-shops in select locations in Horwich, Culverhouse Cross, Chesterfield, Woolwich and Bradley Stoke.

Claire’s Accessories, Sock Shop and Pavers have also inked agreements with Tesco in a move that’s designed to supplement its existing F&F fashion label, as well as similar deals already in place in some stores with Sports Direct and Mothercare.

“We’re always looking at new ways our stores can best serve the needs of local customers,” a Tesco spokesperson said. “Customers in the five locations told us they’d like to see more fashion options in their local area, so we decided to trial introducing some great brands to each store which complement our existing offer.”

According to the Financial Times, it underlines the growing need for supermarket chains to fill excess space as demand for many staple products shifts online. Rival retailer Sainsbury, for instance, has estimated that as much as 6 percent of its store space won’t be needed by 2020 and it plans to fill that gap with apparel and other non-grocery items.

Earlier this month, Tesco announced that its operating profits for the first half of the fiscal year had fallen by 55 percent, from 779 million pounds ($1.2 billion) to 354 million pounds ($541.1 million), excluding income from its now-sold South Korean business.