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Tesco launches Jack's discount chain to rival Aldi and Lidl
03 October 2018, 10:46 | Austin Hogan
Tesco chief executive Dave Lewis
The group has ensured that Jack's will be a low cost model, in order to obtain the lowest possible prices, with the aim of providing 8 products 10 manufactured in the Uk.
Over the next six months Tesco will roll out 10-15 Jack's stores across the United Kingdom, with the first two opening on 20 September in Chatteris, Cambridgeshire and Immingham in Lincolnshire.
Tesco now looks to be trying out a similar strategy, creating through Jack's a brand that competes with the budget supermarkets head on.
Jack's is named after Jack Cohen, who in 1919 founded the business that became Tesco, and is a significant move by Lewis, who has rebuilt Tesco after a 2014 accounting scandal capped a dramatic downturn in trading.
Tesco says most items stocked will be British-sourced, including a special branded range carrying the Jack's name.
"The intention is for us to be cheapest in town", Lewis said.
With its emphasis on a United Kingdom product base, Tesco has finally launched a response to the high street threat of European retailers Aldi and Lidl. Jack's will also be based around a UK-based own-brand approach.
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The ceo of Tesco, Dave Lewis, said at the inauguration of the store of Chatteris (central England) that other opportunities were possible, but that "this is not a calculation that we are doing at the present time".
Between 10 and 15 stores are planned for new locations, next to existing Tesco stores, and a small number of converted Tesco stores.
The Jack's BWS aisle features a selection of branded and own label lines, including a range of RTD canned gin, rum and vodka drinks.
We met John, who has worked at Tesco since 2007, in the carpark.
Although Tesco is Britain's biggest chain with a 27.4 percent share, according to the latest industry data, it could be overtaken by Sainsbury's proposed 7.3 billion pound ($9.6 billion) takeover of Asda.
Britain's "big four" grocers are trying to adapt to changing habits, including the declining popularity of big weekly shops and the growth of online shopping.
Staff at existing Tesco stores slated for conversion have all been offered roles either at a Jack's or a Tesco but some have opted for redundancy. They stock much less variety, which keeps operations leaner, and they specialise in "pile 'em high" seasonal offers, with stock that is for sale until it's gone.
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