Tesco has outlined plans to launch convenience stores stocked only with its Tesco Finest in a bid to increase profit targets.

The retailer laid out plans for these stores to investors and analysts at its Capital Markets Day yesterday and showed an illustration of a ‘Finest’ branded store selling its premium range, as well as a café according to the FT.

The grocer suggested to analysts that such stores could generate an estimated operating profit margin of around 7%, which is twice what the business is currently making.