TESCO is poised to overtake all its rivals to become the largest operator of convenience stores this year, research showed today.

The out-of-town supermarket giant, which has also opened local convenience stores across Hampshire, is set to leapfrog the Co-op, Spar and the owner of the Budgens and Londis chains into top spot in neighbourhood retailing, according to new research.

Such a move would confirm the growing clout of big supermarket chains in a sector that has traditionally been dominated by family-owned shops.

Tesco already accounts for 29.1 per cent of all grocery sales in the UK.