Economy

Tesco opens first discount store to take on Lidl and Aldi

Tesco opens first discount store to take on Lidl and Aldi”

Tesco has opened the door to its first Jack's stores - a new discount concept created to tempt shoppers away from Aldi and Lidl. "Great tasting food at the lowest possible prices with 8 out of 10 products grown, reared or made in Britain".

Jack's stores will be a mixture of entirely new sites, sites adjacent to existing Tesco stores, and converted Tesco stores.

Mr Lewis said: "Jack Cohen championed value for customers and changed the face of British shopping".

"This is first and foremost about how we celebrate the centenary", Lewis told reporters at the Chatteris store, which was built as a Tesco supermarket but mothballed in 2015 when the group was in crisis.

Customers will be able to compare details for themselves before long: in one location, yet to be revealed, there is set to be a Jack's and a Tesco side-by-side, Lewis said.

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.

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.

He added that the move, which has been under discussion at the supermarket for more than two years, is in response to consumer desire for a "smaller, simpler range at shops".

It also follows Tesco's purchase of wholesaler Booker earlier this year for almost 4 billion pounds ($5.27 billion) to expand into supplying caterers and local shops.

Between 10 and 15 other stores are expected to open over the coming months across the country over the coming months.

However, some are concerned Tesco's new format could simply cannibalise sales at its existing stores. Jack's will also be based around a UK-based own-brand approach.

The launch is an attempt to claw back market share from Aldi and Lidl, who have enjoyed a surge in popularity over the past five years. This latter will be sold on a "when it's gone, it's gone" basis, much like Lidl and Aldi's special buy offers. Jack Cohen founded Tesco 99 years ago in 1919.



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