The proposed Tesco-Trend deal will lead to a new stores format which will be mid-sized hypermarket between the format Star Daily and the hypermarket chain of stores Star Bazaar, a senior executive from Trent revealed.

Speaking on the condition of anonymity, the Trend executive said that the partners would be looking to create a new format called Star Market.

The new stores may range between 20,000 sq. feet and 30,000 sq. feet. It means the new format stores will not be larger than the existing Star Bazaar stores.

When contacted, the executive said, "From the discussions that we are having now, the third format is likely to be positioned as a mid-sized format between Star Daily and Star Bazaar. There are no plans of the Star Market stores being larger than the Star Bazaar stores."

The executive also revealed that the new stores would first be opened in larger cities like Mumbai and Bangalore and then in smaller cities across the country. The executive, however, added that they needed to wait for some more time to see how the planned expansion plays out.

On Tuesday, British retailer Tesco announced its plans to invest $110 million (around Rs 684 crore) to open stores in India in partnership with the Tata-owned Trent Hypermarket Limited.