City File: Tesco

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TESCO'S price-cutting offensive could harm the health of most food retailers, according to Bill Currie, BZW's stores analyst. 'Aggressive tactical pricing and the introduction of a generic range . . . is a calculated move, but one that is fraught with risk,' he said.

Worst hit could be Kwik Save, caught between the newly competitive Tesco and the limited-line deep discounters. The only chains not under threat are Sainsbury, with its unequalled brand franchise in the south, and William Morrison, with its equally strong name - and well-contained cost base - in the north.