Tesco launches Jack’s discount chain to rival Aldi and Lidl

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.

10-15 Jack’s stores will be launched in the UK over the next six months, and the first two Jack’s stores will open on 20 September in Chatteris, Cambridgeshire and Immingham, Lincolnshire.

According to Tesco, Jack’s will feature a simplified range of products and a low-cost business model to keep prices low for consumers and operating costs low for the retailer.

Additionally, eight out of ten food and drink products stocked at Jack’s supermarkets will be grown, reared or made in Britain.

The new supermarket is named after Jack Cohen, who founded Tesco in 1919, and the launch of the new chain forms part of Tesco’s centenary celebrations.

Dave Lewis, Tesco Group chief executive, said: “Jack Cohen championed value for customers and changed the face of British shopping. He’s an inspiration for all of us and that same spirit still drives Tesco now.

“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.

“Great tasting food at the lowest possible prices with 8 out of 10 products grown, reared or made in Britain.”

The move comes as Tesco seeks to retain its position at the top of the UK’s grocery retail market, amid rising pressure from its rivals.

Discount retailers such as Aldi and Lidl are growing increasingly popular in the UK, and the German chains have a combined 13.1% market share of the UK’s grocery market.

Tesco also faces the prospect of losing its position as the UK’s biggest grocery retailer due to the proposed merger between rivals Asda and Sainsbury’s, which was agreed earlier this year.

According to Kantar Worldpanel, Asda and Sainsbury’s combined share of 31.4% of the UK grocery market would eclipse Tesco’s 27.6% should the merger be approved by the UK’s competition authority.

The Competition and Markets Authority launched a formal investigation into the proposed merger last month, citing concerns that the merged business could raise prices or reduce service quality due to a lack of competition in the market.