The founder of budget airline easyJet is to launch a cut-price supermarket business, beginning with a store in Croydon.
Sir Stelios Haji-Ioannou, chairman of easyGroup, yesterday announced plans for the bottom-of-the-range easyFoodstores outlet in Addiscombe Road, next to East Croydon station.
The shop, which will sell low-price, non-branded tinned and packet foods, is designed to undersell budget supermarkets Lidl and Aldi.
It is scheduled to open in late autumn.
If deemed a success, the "experiment" could be expanded into a nationwide chain next year.
Mr Haji-Ioannou 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."
Stelios Haji-Ioannou launched easyJet in 1995
He added: "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.
"I hope that a commercially viable venture offering affordable food will help many people in need as well as produce a viable return for the capital employed."
The easyFoodstores will open on the ground floor of a nine-storey office block recently acquired by easyGroup from insurance firm Metlife.The building's top three floors will house a hotel, under the company's easyHotel brand, while lower floors will be rented out through its easyOffice arm.
Two floors of the tower block could also become an easyGym.
The announcement of the Addiscombe Road food shop follows speculation about the registration of the easyFoodstore.com web domain.
A spokesman for easyGroup said Croydon had been chosen because its demographic suited the brand, adding the store would work with local suppliers when possible.
It is the latest in a long series of new ventures by easyGroup, which began with the low-cost airline founded by Mr Haji-Ioannou in 1995 and now includes pizza delivery, hotels, vehicle rental and office companies.
But other ventures have fallen by the wayside, including a musical retail business, a cinema and a men's toiletries line.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel