Tesco to launch cut-price brand Jack's next week
Tesco is set to launch its discount chain Jack’s next week in a move to take on rivals Aldi and Lidl.
The first of the stores, named after founder Jack Cohen, will be unveiled by CEO Dave Lewis on Wednesday.
Tesco, like many mainstream supermarkets is moving into the growing discount market following the steps of its German rivals Aldi and Lidl.
Lewis already launched low price "farm" brands with names such as Redmere, Woodside and Willow which are also expected to be sold in Jack’s.
Shore Capital analyst Clive Black said on Wednesday the new chain could reach 100 stores, including 60 of its small 'Metro' supermarkets: "Tesco has a cohort of problem stores where the traditional Tesco offer is a square peg in a round hole. They have got low footfall and low income hinterlands and Aldi and Lidl are taking everyone’s legs away."
During the summer months, Tesco started recruiting staff for a "new store format" in Chatteris but most people working there, including suppliers, have been forced to sign non-disclosure agreements.
Tesco previously tried the discount route in the 1980s with Victor Value, but the move failed after four years because of fears it might hurt the main brand.