[attach id="274645" size="medium"]EasyJet founder Sir Stelios Haji-Ioannou.[/attach]

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 has 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 with a venture that could, if successful, be rolled out on a wider scale next year.

Sir Stelios said he became aware of an opportunity amid publicity about the widespread use of food banks.

He 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. No other details have yet been decided.”

Sir Stelios said the business could be expanded next year by taking advantage of weak property prices to buy up freehold retail sites.

He added: “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.”

Recent 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.