Published: Wed, October 03, 2018
Business | By Eloise Houston

Tesco reveals discounter brand Jack's: 'it will cheaper than Aldi and Lidl'

Tesco reveals discounter brand Jack's: 'it will cheaper than Aldi and Lidl'

Most of the products on the shelves will be own-brand and eight out of 10 Jack's food and drink products will be "grown, reared or made" in Britain, according to Tesco.

Over the next six months Tesco plans to launch 10-15 Jack's stores in the UK.

"The intention is for us to be the cheapest in town", said Lewis, adding Jack's could benefit from Tesco's buying power. Jack Cohen founded Tesco 99 years ago in 1919.

The Cambridgeshire shop was originally planned for a Tesco site, with further stores opening on a mix of new sites and spots adjacent to Tesco stores, as well as a number of converted Tesco stores.

Tesco confirmed predictions that the new brand will operate a low-priced business model, with stores offering a much smaller range of products than the parent brand (2,600 in Jack's compared to 35,000 in a similar sized Tesco store) and will be kitted out with very basic fixtures and fittings.

Tesco's foray into the discounter space follows close to a decade of consistent market leading sales growth from German brands Lidl and Aldi. "If you ask me personally I think they can co-exist, but we're gonna wait and see", he said.

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

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.

However, Mr Lewis admitted that staff at Jack's will not be paid the same as employees at Tesco stores, but will instead be on "more of a base rate pay".

Commenting at the launch of the new concept in Chatteris, Cambridgeshire, Lewis said that the strong United Kingdom sourcing focus evident in the store was due to customer feedback, rather than the retailer insulating itself against potential Brexit sourcing challenges.

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.

Tesco is stepping up its fightback against Aldi and Lidl with the launch on Wednesday of its own cut-price chain, Jack's.

The launch comes on the same day as the announcement of an investigation into the merger of two of the other largest supermarkets in the UK, Sainsbury's and Asda. In fresh produce, Jack's will offer a Fresh Five of discounted items on fruit and veg, similar to Aldi's Super 6.

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