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 new 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.
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’slabel, 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 this week in Chatteris, Cambridgeshire, and Immingham at formerly “mothballed” Tesco sites. At least five Jack’s stores will be converted Tesco locations and the rest will be newly acquired.
One of the new openings will be located next door to an existing Tesco store.
Between 10 and 15 branches will also open in the next six months and it’s already recruiting at new locations.
There are currently 5 places Tesco is recruiting General Assistant roles for a Jack’s store, including St Helens, Middlewich, Edge Hill, Rubery and Castle Bromwich.
So how do prices compare to those at Lidl and Aldi?
Numbers crunched by mySupermarket.co.uk show the following on select products: Item Jack’s price
1) Turkey Breast Mince 2% fat 500g £3.35
Asda - £3.29
Tesco - £4
Sainsbury’s - £4
Morrisons - £4
Lidl - £3.19 Aldi - n/a
2) British semi skimmed milk 2.27L/4pts £1.09
Asda - £1.09
Tesco - £1.09
Sainsbury’s - £1.10
Morrisons - £1.10
Lidl - £1.09
Aldi - £1.09
3) Cox apples 6 pack 77p
Asda - n/a
Tesco - £1.60
Sainsbury’s - £1.80
Morrisons - £1.50
Lidl - n/a
Aldi - n/a
4)Broccoli 350g 48p
Asda - 58p
Tesco - 55p
Sainsbury’s - 55p
Morrisons - 58p
Lidl - 68p
Aldi - n/a
5) Own label baked beans 420g 29p
Asda - 23p
Tesco - 32p
Sainsbury’s - 30p
Morrisons - 32p
Aldi - n/a