In her email to Sir Terry, she said: “The books stocked in Tesco are always on the best-seller list and I realise you have to make a profit just as we do.
"However – and here is my suggestion – there are plenty of books we stock which you would never have on your shelves.
"So I would like to suggest that in order to show that you don't want to decimate local businesses why don't you allow us to advertise above the books you are selling.”
Mrs Davies said: “Tesco emailed back almost immediately saying they agreed with us, and that they would talk to the local manager about putting up a sign.”
The Tesco email, from Regional Corporate Affairs Manager Deborah Hayeems, said: “It is always encouraging to hear from independent retailers like yourself with practical suggestions for how we can work together. I have spoken to our store manager, Matt Tomlinson, who would be happy to install some signage to direct people to you for less-popular titles.”
Mrs Davies said she could not be sure how many people had come as a result of the sign, but that since the sign was put up several weeks ago the shop’s sales have been up.
A spokesman for Tesco said the decision to agree to put up the sign was a local one made at store level.