Woolworths is preparing to launch a new food retail concept in Sydney.

Woolworths has internally codenamed the project Project Basil – and a spokesman says they will be branded Thomas Dux Grocer.

Tomorrow’s subscriber-only edition of FOODweek reveals the first two Thomas Dux Grocer stores will open in April or May next year. One will be located in the lower north shore suburb of Lane Cove, in an existing Food For Less supermarket site at 62 Burns Bay Rd, the other in a site currently home to a small Woolworths on Glenmore Rd in Sydney’s Paddington.

Lyn White reports in FOODweek that while details at this stage are scant, it is understood the new concept will be locally driven with a bigger fresh food offering and a bigger deli section. A Woolworths' spokeswoman said the interior would be "smart", but not as high-end as David Jones' Foodhalls.

A spokesman for Lane Cove's Food For Less said the store would close on January 13, re-opening about three months later under the Thomas Dux Grocer brand.

For the full story, read tomorrow’s FOODweek.

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