Tesco launches Jack's Shop Smart mobile app for discount store launch

Dave Lewis

The giant british Tesco retail tent betting discount with its new chain of shops, Jack's, created to compete on their ground, the German Aldi and Lidl, in full boom in the United Kingdom.

Tesco says in the nest six months it will launch between 10 and 15 stores around the UK.

When asked by BBC reporter Emma Simpson if Jack's will be cheaper than Aldi and Lidl, Dave Lewis, Tesco Group chief executive, said: "That's the intention".

Tesco said that eight out of 10 Jack's food and drink products will be "grown, reared or made" in Britain and stores will stock an own brand range, also branded Jack's.

In addition to the Jack's own label produce, the stores will stock some familiar grocery brands and a range of general merchandise on a "when it's gone, it's gone" basis - similar to its German rivals.

Although Tesco is Britain's biggest chain with a 27.4 percent share, according to the latest industry data, it could be overtaken by Sainsbury's proposed 7.3 billion pound ($9.6 billion) takeover of Asda.

Jack's stores will be a mixture of entirely new sites, sites adjacent to existing Tesco stores, and converted Tesco stores.

Commenting at the launch of the new concept in Chatteris, Cambridgeshire, Lewis said that the strong United Kingdom sourcing focus evident in the store was due to customer feedback, rather than the retailer insulating itself against potential Brexit sourcing challenges.

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With its emphasis on a United Kingdom product base, Tesco has finally launched a response to the high street threat of European retailers Aldi and Lidl.

Tesco state its new brand will operate a low-priced business model keeping costs and prices down, with no "fancy fixtures of fittings".

You've got to hand it to Dave Lewis - the decision to launch a new chain of budget stores is certainly ballsy.

The new Jack's brand - a reference to Tesco founder Sir Jack Cohen and a nod to the company's 100-year history - will begin appearing next week in repurposed and existing Tesco properties.

'He's an inspiration for all of us and that same spirit still drives Tesco now.

The number one british intends to meet the competition of brands of maxi-discount German Aldi and Lidl, whose sales soar at the expense of the traditional players, at a time when the purchasing power of households is under pressure in the country.

The launch is an attempt to claw back market share from Aldi and Lidl, who have enjoyed a surge in popularity over the past five years.

"With its heavy Union Jack branding and promises on provenance Jack's is clearly looking to make its name as a solid British retailer".

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