TESCO Plc, the United Kingdom's largest supermarket chain, has introduced a new discount product range and cut prices on hundreds of items after a report showed that budget retailers Aldi Group and Lidl are gaining ground.

Tea bags, biscuits, shampoo and washing-up liquid are among 350 products included in the Discount Brands at Tesco label, the Cheshunt, England-based retailer said in an e-mailed statement yesterday.

The new range may save customers as much as 24 pounds (US$42.90) a week on a typical basket of shopping, according to Bloomberg News.

Tesco's share of the UK food retail market fell for an eighth month, according to figures released on Tuesday by market researcher Taylor Nelson Sofres Plc.

Aldi and Lidl increased their share in the 12 weeks ending on September 7 as rising fuel and food prices caused consumers to turn to cheaper brands.

"UK consumers are more concerned about food prices today than they have been for the last 20 years," Tesco said in the statement. "Not since the late 1980s have prices featured so highly on shoppers' list of concerns."