SUPERMARKET giant Tesco is buying the UK's second largest convenience store group T&S Stores in a shock £377.3 million deal announced today.

Tesco said the acquisition would increase its presence in "many neighbourhoods across the country" and bolster its share of a growing market.

T&S Stores runs more than 850 convenience stores - under the One Stop and Day & Nite names - and Tesco plans to convert more than half to its Tesco Express format.