Jack’s “Part of the Tesco family”

Still a huge player in the supermarket game, Tesco has just celebrated 100 years in business. Rumoured to try and compete with the giants Aldi and Lidl, Tesco has announced the opening of a new chain of supermarkets called ‘Jack’s’. So far there are two stores, in Chatteris and Immingham.

Jack’s is named after Tesco’s founder (Mr Jack Cohen) and the idea is to put emphasis on Tesco’s rich heritage for a patriotic shopping experience. Perhaps anticipating Brexit?… Instead of Tesco’s traditional 25,000 products, Jack’s will simply stock 2600 essentials with low prices throughout.

Jack's chatteris store

Competing with Aldi and Lidl in the Disruptive Market

German retailers Aldi and Lidl have really changed the UK grocery market and have nearly doubled their market share in the last five years, much more quickly than traditional supermarkets. The general consensus seems to be that Jack’s will find it difficult to filter some trade off the two giants.

As well as offering very similar products and services to Aldi and Lidl, Jack’s bosses are committed to offering the lowest price and boast outstanding value from having 8/10 products ‘grown, reared or made in Britain’. However, Aldi’s spokesperson has already threatened price cuts to keep its lowest price promise to customers. Whether Jack’s products can compete on quality though, is yet to be seen. Aldi and Lidl have both won awards recognising their great tasting products so will be hard to beat!

Jack’s will also sport a “When it’s Gone it’s Gone” aisle similar to that of its competitors and containing a selection of non-food (slightly random) items that will change every four weeks. In addition it will have an alternating ‘fresh five’ seemingly copying Aldi’s ‘super six’ in the fruit and vegetable aisle.

As is common in discount stores, around 70% of the products are own brand and will also feature some of the same products from the new Tesco value brand ‘Fascia’. However, the stores will also stock 700 much-loved big brands like Coca-Cola and Bovril.

 

Brands Need to Adapt to Survive

We all know that high street shops are in decline and supermarkets are facing pressure to cut prices and be competitive. The Asda – Sainsbury’s merger is still set to go ahead in an attempt to save all combined stores. Both have previously launched discount stores and failed! Will Jack’s be any different?…