Tesco poised to launch budget discount chain
Tesco is expected to launch the first store under its newly-created discount supermarket chain Jack’s, as early as next week.
It is believed that the supermarket chain is poised to reveal the new format Jack’s – named after Jack Cohen, who founded Tesco in 1999 – in a matter of days, with the first store expected to be in Chatteris, Cambridgeshire.
The concept is part of Tesco’s strategy to battle against the rise of German discounters Aldi and Lidl, according to newspaper reports, with traditional supermarkets struggling to entice shoppers away from these rival stores' cheaper products, particularly those in the BWS section where the discounters have developed a strong reputation.
Aldi and Lidl now have a combined market share of 13.1% in the UK, while Tesco still holds the biggest share of 27.4%, followed by Sainsbury’s with 15.5% and Asda at 15.2%.
Reports suggest between 50 to 100 Tesco stores – probably existing Tesco Metros stores - could be converted to the new Jack’s discount format over the next few years.
Tesco is also said to be recruiting for staff at new format stores in Wandsworth, Lincolnshire and Cambridgeshire.
One of the job adverts for the new store said: “The new retail format will be operated separately from the core Tesco business and as such benefits offered will be different from those offered at Tesco.”