Supermarket giant Tesco has struck a deal with Dixons Carphone to begin trialling Currys PC World concessions in its biggest stores.

Britain's largest grocer said the partnership would lead to two Currys PC World outlets opening in Tesco Extra stores, as it looks to offer "the best possible range of services".

The first concession is slated to open in July at the Tesco Extra store in Milton Keynes, with a second being launched in August at the Weston Favell Extra store in Northampton.

The moves comes after rival Sainsbury's delved further into the electrical goods market when it sealed a £1.4 billion takeover of Argos owner Home Retail Group last year.

Matt Davies, UK chief executive of Tesco, said: "We're always looking at ways to offer our customers the best possible range of services in our stores.

"We think this is a winning combination for customers and look forward to opening the first outlet in our Milton Keynes store in July."

It follows an announcement on Tuesday that the UK's competition watchdog had launched an investigation into Tesco's £3.7 billion merger with food wholesaler Booker.

The initial probe by the Competition and Markets Authority will last until July 25 and will discover whether the tie-up will curb choice for customers.

On the Tesco partnership, Katie Bickerstaffe, Dixons Carphone's UK and Ireland chief executive, said: "Customers tell us they want to pick up the latest electrical products conveniently and at competitive prices, with expert advice and from someone they trust to keep them working seamlessly.

"This trial gives them all of this during a weekly grocery shop, which we hope they will enjoy."

Dixons Carphone hailed rising full-year revenue last week, despite what it described as a ''lively political backdrop''.

The retailer reported a 9% rise in annual sales, with like-for-like sales growing 4% in the period.

mfl