Tesco unveils Jack's to compete with Lidl and Aldi

Lloyd Doyle
September 22, 2018

Tesco chief executive Dave Lewis said: "We will be the cheapest in town".

Hundreds of shoppers in Chatteris queued up as Tesco's first new Jack's discount stores opened for business.

However its dominance is also threatened by another big deal as "Big Four" rivals Sainsbury's and Asda plan a £15billion merger that would make a combined company the biggest supermarket chain by share.

"It's fitting that we mark the beginning of Tesco's celebration of 100 Years of Great Value by launching a new brand, and stores bearing his name: Jack's".

Britain's biggest retailer Tesco inaugurated its first Jack's store in Chatteris - a small town 80 miles (128 kilometers) north of London - on Wednesday.

Commenting on the announcement, John Perry, managing director of SCALA, a leading provider of management services for the supply chain and logistics sector, said, "With discount retailers Lidl and Aldi reported to control around 13 per cent of the United Kingdom grocery market, it's no surprise that retail giant Tesco has launched its own discount chain, Jack's".

In addition to the Jacks brand, Jacks will stock some familiar grocery brands and a range of general merchandise on a “When its Gone, Its Gone” basis.

Jack's will operate a low-cost business model that is created to keep costs low and prices down.


The chain is named after Tesco founder Jack Cohen, who earned the nickname "Slasher Jack" for his "pile it high, sell it cheap" strategy - one that Tesco is now trying to replicate to fight off the fierce competition that's slowly but surely eating its market share.

Tesco now has a 27.4 percent share of Britain's grocery market, according to the latest industry data, although it could be overtaken by Sainsbury's proposed 7.3 billion pound takeover of Asda.

Tesco said that eight out of 10 Jack's food and drink products will be "grown, reared or made" in Britain.

Over the next six months Tesco will launch 10-15 Jacks stores in the UK.

"Only time will tell as to whether Tesco's discount venture takes off".

Sainsbury's, which confirmed its merger with Asda earlier this year, has a 15.4% share of the market, while its Walmart-owned partner has 15.3% share.

Jack's is not the first attempt by Britain's mainstream grocers to crack the discounter market.

"Tesco will have to find a way to attract customers from the likes of Aldi, Lidl and Iceland, rather than convert existing Tesco customers into discount shoppers through brand association", he said.

Other reports by Iphone Fresh

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