Tesco has revealed its discounter brand Jack’s, with chief executive Dave Lewis saying it will compete with European rivals Aldi and Lidl by offering up British produce at lower prices.
The Jack's branding (the is name a nod to Tesco founder Jack Cohen) states it will offer ‘great-tasting food at the lowest possible prices’, promising that eight out of 10 food and drink products will be grown, reared or made in Britain.
Lewis cut the ribbon of the first store in Chatteris, Cambridgeshire this morning. The Jack’s logo is simply its name hand painted onto a bright red background. The CEO said it was his “intention” to offer in-store prices that are cheaper than Aldi and Lidl.
Tesco confirmed predictions that the new brand will operate a low-cost business model, with stores offering a much smaller range of products than the parent brand (2,600 in Jack's compared to 35,000 in a similar sized Tesco store) and will be kitted out with very basic fixtures and fittings.
The shelves will be stocked with an own-brand range, also named Jack’s, however stores will also stock some well-known grocery brands and a range of general merchandise. This latter will be sold on a ‘when it’s gone, it’s gone’ basis, much like Lidl and Aldi’s special buy offers.
Early reports suggest Jack’s will sell loaves of own-brand bread for as little as 45p.
Tesco will open 10-15 Jack’s stores across the UK over the next six months. Chatteris and a shop in Immingham, Lincolnshire will open to the public tomorrow (20 September).
Jack’s stores will utilise a mix of new sites and converted Tesco stores. Interestingly, the brand will also locate some adjacent to existing Tesco stores – allowing the new brand to potentially cannibalise sales.
The launch also marks the parent brand’s centenary campaign, ‘Celebrating 100 Years of Great Value’.
“Jack Cohen championed value for customers and changed the face of British shopping,” said Lewis. “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 eight out of 10 products grown, reared or made in Britain.”