Monday, 10 December, 2018

Tesco unveils discounter 'Jack's', to open 10-15 stores in 2019

The new Jack's brand is unveiled in Chatteris The new Jack's brand is unveiled in Chatteris
Nellie Chapman | 21 September, 2018, 23:13

Tesco has launched a new discount supermarket chain called Jack's, which has been introduced as the retailer aims to fend off the rising threat of discount chains Aldi and Lidl and consolidate its position as the UK's largest retailer.

The ambition of Tesco is to launch in the next six months 10 to 15 stores Jack s in the United Kingdom, with an initial investment between 20 and 25 million pounds.

They have responded with lower prices and better service, although analysts say that with Aldi and Lidl growing at 10 percent each year it makes sense for Tesco to try and capture some of that growth. Articles appear on euronews.com for a limited time.

Jack's will have a range of 2,600 products, is less than a Tesco classic, which many will be sold under the new brand.

British provenance will be a key point of difference for Jack's, with eight out of 10 products grown, reared or made in Britain.

Here's a first look at the new store.

"Jack's fits perfectly into the current consumer zeitgeist and will drive revenues as well as protecting margins across the Tesco group", said Freddie Lait, chief investment officer of Latitude Investment Management.

Launch of Jack's supermarket in Chatteris
Launch of Jack's supermarket in Chatteris

"The intention is for us to be the cheapest in town", said Lewis, adding Jack's could benefit from Tesco's buying power.

"It's fitting that today, 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".

As shopping habits have changed after the financial crisis and the growth of online shopping, with thrift and smaller but more frequent shops now more common, Britain's big four grocers are scratching their heads over how to better defend their 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.

In addition to Jack's products, the stores will stock some familiar grocery brands and a range of general merchandise on a "When it's Gone, It's Gone" basis, Tesco said.

"Aldi and Lidl both successfully compete in the retail sector by using a consistent layout in custom-built stores with a supply chain that sources items from suppliers across Europe". "Almost half of shoppers try to buy local produce when they can so it could be a savvy move, though it's still very early days".