Monday, 17 December, 2018

Inside Tesco's new discount chain Jack's, Chatteris

Workers unveil the branding at Tesco’s new discount supermarket Jack’s in Chatteris Britain Workers unveil the branding at Tesco’s new discount supermarket Jack’s in Chatteris Britain
Laurie Berry | 21 September, 2018, 23:10

British supermarket group Tesco laid down the gauntlet to German discounters Aldi and Lidl by launching what it said would be the cheapest store in town.

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

At least five Jack's stores will be converted Tesco locations and the rest will be newly acquired.

Looking around Jack's range which is smaller than the offering in Tesco - there are only one or two options for every food product rather than the ten you would find in a normal Tesco - some prices seemed to be around the same as those charged for the Tesco essential range.

However, its dominance is threatened by Aldi and Lidl, which combined enjoy a 13.1 per cent share of the grocery market.

The retailer is already emphasising its British provenance, pledging 8 out of 10 food items in Jack's will be grown, reared or produced in the UK.

The ceo of Tesco, Dave Lewis, said at the inauguration of the store of Chatteris (central England) that other opportunities were possible, but that "this is not a calculation that we are doing at the present time".

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Workers unveil the branding at Tesco's new discount supermarket Jack's, in Chatteris, Britain, September 19, 2018.

"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.

The tie-up between Tesco's two nearest competitors, which regulators today said would be scrutinised in depth, is also driven, at least in part, by the rise of the discounters.

In a statement the company simply said it would be "sharing some exciting news" after earlier advertisements for staff for a "new store format" in Chatteris.

"Jack's not going to immediately begin the market shares of the competition, in any case, considering the number of openings announced today", emphasizes Fraser McKevitt, an analyst at Kantar, according to which the new sign is "clearly a bet on the long term".

"It won't be easy to crack the discount market though, even for a brand of Tesco's size", said Gordons law firm partner and head of retail Andy Brian. The offer is similar to the Lidl Pick of the Week and Aldi Super Six offers, which change on a weekly basis.

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