Tesco hurts Lidl, Aldi with 1st Jack's store

Syndicate Post image

Customers shop in Tesco’s new Jack’s store in Chatteris Cambridgeshire

"Jack Cohen championed value for customers and changed the face of British shopping,"Dave Lewis, Tesco Group chief executive, said about the new project".

Tesco unveiled its first Jack's store - named after the United Kingdom supermarket chain's founder, Jack Cohen - in a small town 80 miles (129km) north of London.

It comes after the UK's so-called Big Four supermarkets - Tesco, Asda, Sainsbury's and Morrisons - have taken a hammering at the hands of Lidl and Aldi.

The Jack's brand is named in honour of Tesco founder Jack Cohen and forms part of the supermarket giant's centenary celebrations.

Some 10-15 Jack's stores will open over the next six months, with the first two on Thursday - at Chatteris and Immingham in eastern England.

"He is an inspiration for all of us and that same spirit still drives Tesco now".

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".

Tesco unveils new Jack’s concept
Delia Fernandez who queued from 3am for the opening

New Wakefield art exhibition is set 15,000 ft above cityIn addition to the Jack's brand, it will stock some familiar grocery brands and a range of general merchandise on a "When it's Gone, It's Gone" basis.

To compete with them, Jack's would have to expand rapidly while undercutting Aldi and Lidl's prices at a time when the two incumbent discounters are bound to review their own costs in a bid to show the new kid on the block who rules this roost.

The stores to follow will include a mix of purpose-built locations, as well as those that will operate quite literally next door to already existing Tesco stores. Tesco chief executive Dave Lewis said Jack's would sell "great-tasting food at the lowest possible prices with eight out of ten products grown, reared or made in Britain".

The retailer, which has around 50 stores in Northern Ireland, is establishing the brand in a bid to fight off the challenge of German discounters Aldi and Lidl.

Sainsbury's and Walmart-owned Asda, meanwhile, are trying to improve their fortunes with a planned merger.

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

In contrast, Aldi and Lidl had grown their respective market shares to 7.6% and 5.5% respectively.




Latest News