Tesco unveils new supermarket Jack's in war with Aldi and Lidl

Dave Lewis

Tesco is Britain's grocery market leader with a share of 27.4%, while Aldi and Lidl have increased their combined share to 13.1%, according to the latest data from Kantar Worldpanel.

The new format opens in a Tesco "ghost store", which has lain empty since 2014 when the retailer halted expansion plans after a dive in profits and an accounting scandal. Around 1,800 products will be under the Jack's brand.

"We leverage the size and expertise that's available to Tesco and Tesco partners and we bring that capability to Jack's in an operating model that is lower and we pass that benefit on to our customers", Mr Lewis said on Wednesday.

Some 350 Tesco suppliers are involved in Jack's.

Bosses of the supermarket giant say the new Jack's store in Fenland Way has created 30 jobs.

He said: "Jack's will need to work hard to dent the success of Aldi and Lidl, and will also need to prove its value against the wider Tesco offering including its existing chain of One Stop convenience stores".

Britain's biggest retailer will open its first two Jack's stores on Thursday in Chatteris, Cambridgeshire, and Immingham, North East Lincolnshire. The new chain is named after Jack Cohen, who founded Tesco 99 years ago, earning the nickname "Slasher Jack" for his "pile-it-high, sell-it-cheap" approach to retailing.

Tesco, Sainsbury's, Asda and Morrisons have all been forced to slash costs and close unprofitable stores to fund price cuts on everyday essentials where competition from discounters is heaviest.

Jack's stores will utilise a mix of new sites and converted Tesco stores.

"Because of that range and the simplicity, how we run the store is cheaper to run", he said.

"If there is an offer that has an appeal in the marketplace it's important that we, as Tesco, through Jacks, give that to the local market".

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

Jack's stores will be low-cost, no frills or added extras with a simplified range of quality products at low prices.

The launch also marks the parent brand's centenary campaign, "Celebrating 100 Years of Great Value".

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