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06
Dec
How will Tesco's arrival shake-up shopping in Harrogate?
Tesco's long-awaited arrival in Harrogate is set to provide the biggest shake-up of shopping habits in the town for decades.
The supermarket will open at 8am on Tuesday on the old gas works site it bought 22 years ago.
It means shoppers can now choose between Tesco on Skipton Road, Asda on Bower Road, Waitrose on Station Parade, Sainsbury’s on Wetherby Road, Morrisons at Hookstone Chase, Aldi at Oak Beck Retail Park and Lidl on Knaresborough Road.
There’s also M&S Simply Food on Leeds Road and a food hall in M&S on Cambridge Street, as well as various Co-ops and smaller supermarkets.
The last supermarkets to open were value brands Lidl in 2022 and Aldi in 2016.
The Lidl opening in 2022
Tesco’s arrival is more significant. It is by far Britain’s largest supermarket with 28.2% of market share. Sainsbury is second with 15.7%, followed by Asda with 11.6%, Aldi with 10.6% and Morrisons with 8.2%.
So who will be the winners and losers?
Sarah Johnson, retail expert and director of Flourish Retail, says Tesco’s size gives it a “clear advantage in pricing, promotions and perception” and expects shoppers to flock there in the run-up to Christmas.
Ms Johnson said:
With Clubcard prices and Aldi price match, Tesco is seen as both affordable and familiar. When a new store opens, there’s often a ‘curiosity dip’ for competitors as shoppers head there to compare prices and experience. Even loyal customers at other supermarkets are likely to visit at least once out of interest.
Selling clothes and fuel will also help Tesco be seen as a one-stop destination and discourage shoppers, who might previously have bought basic goods at Aldi or Lidl and more luxurious items at Waitrose or M&S.
Who will suffer?
So which rivals will suffer? When Tesco opened a supermarket 11 miles away in Ripon last month, Clare Bailey, who runs the Retail Champion website, said Sainsbury’s and Morrisons were most likely to feel the impact of Tesco breathing down their necks.
But geography is also a factor — Sainsbury’s and Morrisons are both four miles away from Tesco and on the other side of Harrogate.
When we asked on social media this week whether people would use Tesco, one man summed up what many feel: “I live out in the dales so it’s the right side of town for me and whole load of others.”
But whether people living on the south side of Harrogate, which is well served for supermarkets, will want to trek across town and endure the delights of driving on Skipton Road is less certain.
The supermarkets closest to Tesco — Aldi and Co-op — could feel the most heat.
Ms Johnson says:
I would expect Aldi in particular would see a drop in footfall and sales initially, but will no doubt then regain customers, but it will be a blow to them as it will likely pull some of their market share away to Tesco.
The Co-op at Jennyfields
Jennyfields fears
Concerns about Tesco’s impact on the Co-op in Jennyfields were raised when Tesco received planning permission in February 2023 for a supermarket, petrol station and a 209-space car park.
A council report that year said there was "real potential for the proposed Tesco store to have a significant adverse impact upon the Co-op store and the wider performance of the Jennyfield local centre". It calculated the cumulative impact of a new Tesco on the Co-op could see trade decline by 22.4%.
The council therefore asked Tesco to sign an agreement to use "reasonable endeavours" to open a Tesco Express at Jennyfields local centre if the Co-op closes within five years of Tesco opening and to agree to operate it for at least five years. An independent expert will determine any disputes over this.
Councillor Monika Slater, a Liberal Democrat whose Bilton Grange and New Park division on North Yorkshire Council includes all three northern supermarkets, said she was concerned about Tesco’s impact on Aldi and the Co-op as well as the convenience store Number One Shop on Electric Avenue.
Cllr Monika Slater
Cllr Slater said traffic measures for the new roundabout and access road off Skipton Road had already had an impact on local firms and the increase in lorries was affecting residents.
She added:
Tesco is a very well known brand and I do have concerns about the Co-op. People are right to be nervous. If we lost the Co-op it would affect a lot of people who don’t have cars.
Ultimately people will vote with their feet. Curiosity will bring people to Tesco but we need to see how it settles down. The increased traffic could put more people off.
Tesco’s arrival appears to be good news for shoppers seeking more choice and for the 120 staff the supermarket has hired. But other supermarkets — particularly those nearby — face a nervous 2026 seeing how it affects their bottom line.
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