Tesco discount store to challenge Lidl and Aldi

TESCO has launched its new discount store format called Jack’s, as it attempts to take the fight to German discounters Aldi and Lidl.

The supermarket giant plans to open between 10 and 15 branches over the next year, investing at least £20 million in the project and creating up to 250 jobs.

The brand is being widely hailed as a challenger to Aldi and Lidl, which have eaten into the market share of Britain’s so-called “big four” supermarkets.

Like the German duo, Jack’s stores will have lower operating costs than Tesco outlets due to their smaller range of products and simplified design.

Tesco boss Dave Lewis said the prices will be “the cheapest in town” at each location.

“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 yesterday.

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”.

Jack’s will carry 2,600 lines compared to tens of thousands in Tesco.

Of these, 1,800 will be own-brand products under the Jack’s label, sourced from the Tesco supply chain. Some 350 Tesco suppliers are involved in Jack’s. Eight in 10 products on the shelves are grown, reared or made in the UK.

The first two stores are set to open today in Chatteris, Cambridgeshire, and Immingham at formerly “mothballed” Tesco sites.

The launch of Jack’s is part of Tesco’s centenary celebrations next year. Jack Cohen founded Tesco in 1919.