Tesco is piloting a shop-in-shop tie-up with fashion giant Next as the grocer seeks new ways to utilise excess store space.

Next has taken around 4,300 sq ft of space in the supermarket giant’s Surrey Quays Extra store in a one-off trial.

The shop-in-shop, which opened earlier this week, stocks a streamlined range of the retailer’s womenswear and menswear proposition.

Next is the latest retailer to join forces with a big four grocer as the supermarket giants continue a drive to reinvent their largest shops.

Tesco has already joined forces with the likes of Dixons Carphone, Holland & Barrett and Arcadia to offer consumers more reasons to visit its stores.

Sainsbury’s is rolling out hundreds of Argos shop-in-shops and a clutch of mini Habitat sites after acquiring their former owner Home Retail Group last September, while it has also tied up with business including Clarks, Specsavers and Starbucks.

Morrisons is installing Amazon lockers and is also working with shoe repair specialist Timpson, and Walmart-owned Asda is leasing store space to the likes of McDonalds, Decathlon and Supercuts.

A Tesco spokeswoman said: “We want to offer our customers the best possible choice and convenience when they shop with us.

“We have a number of partnerships in stores across the UK, complementing our existing Tesco products and services.

“We’re pleased to be partnering with Next in our Surrey Quays store and look forward to seeing how customers respond.”