AISLE BE DAMNED
Tesco opens new discount chain Jack’s as it takes on Aldi and Lidl
The UK's biggest supermarket is opening a new discount brand in Chatteris in Cambridgeshire in a bid to rival Aldi and Lidl
TESCO has unveiled its new discount store Jack's today in a bid to rival Aldi and Lidl.
The first branch was revealed by Tesco boss David Lewis in the small Cambridgeshire town of Chatteris this morning - and we've got a first-look inside.
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The new chain is named after Jack Cohen, who founded Tesco 99 years ago.
The UK's biggest supermarket will open 10 to 15 branches of the new chain over the next six months, as it tries to tempt back customers from German discount rivals.
At least five of these stores will be existing Tesco branches.
Two new stores will open tomorrow in Chatteris, Cambridgeshire and Immingham, north east Lincolnshire.
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Stores will have a much smaller amount of products - just 2,600 compared to tens of thousands in normal Tesco branches.
At least 1,800 of these products will be Jack's own branded goods, the rest will be big brands such as Kingsmill.
There is a focus on selling British produce with 8 out of 10 products in stores made or produced in the UK.
Jack Cohen, founder of Tesco, who liked to pile it high and sell it cheap
JACK Cohen started selling leftover groceries on a market stall in Hackney in 1919, using his £30 demob money to buy the first day's stock.
He came up with the name Tesco in 1924 after buying a shipment of tea to start selling his first own-label products.
Jack was one of five kids born to working class parents in London's East End. He was a grafter.
Part wholesaler, part market trader, he had an eye for a deal and intuition for what his customers needed.
He married Sarah - Cissie - Fox in 1924, and the couple had two daughters.
The first Tesco store was opened in Burnt Oak, Edgeware in 1929.
Father-of-two Cohen, knighted in 1969, became known for his "pile it high and sell it cheap" motto.
He died aged 80 in 1979.
Customers will not be able to earn Tesco Clubcard points when shopping in Jack's stores - and there will be no website.
Jack's will have its very own version of Aldi specialbuys with a "WIGIG" aisle, which stands for "when it's gone, it's gone".
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This shop feels a Lidl bit familiar
By Ben Leo
REMOVE the bright and bold Jack’s branding and you could mistake Tesco’s new venture for a Lidl or Aldi.
It is cheap and cheery and they aren’t shy about their home-grown produce — with enough Union flag decor to fill a patriotic Brit with pride.
Savings to customers will be passed on courtesy of Tesco’s penny-pinching planners, who have streamlined Jack’s stores to be more economically run.
For example there are no fancy floor tiles, just cheaper, polished concrete.
Freezers are more energy-efficient than at Tesco — while Jack’s stock is packaged so it can slide effortlessly from pallet to shelf.
A measure which will save staff precious time — and, of course, money.
This will contain non-food products such as Dysons, irons and even Jo Malone look-alike products.
There will be no single-use plastic bags, but Jack's branded bags for life will cost 10p each.
The Chatteris store will open 8am to 10pm Monday to Saturday and 11am to 5pm on Sunday's.
We spotted some money-off coupons, which means if shoppers spend £20 they will get £5 off.
Staff won't have to wear a uniform just a Jack's branded apron and there will be a mix of regular checkouts and self-service tills.
Customers can also use an app called Shop Smart to scan items as they go throughout the store.
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Aldi and Lidl bargain retailers have nearly doubled their market share to 13.1 per cent in the last five years, forcing other supermarkets to slash prices and close unprofitable stores.
Tesco is also facing the prospect of losing its spot as the biggest supermarket in Britain - from the potential merger between rivals Asda and Sainsbury's.
The two announced earlier this year that they plan to merge in a blockbuster £15billion deal - which would see them leapfrogging Tesco to become the nation's largest supermarket chain.
In 1919, Tesco’s founder Jack Cohen started selling armed forces surplus stock from his market stall in Well Street, Hackney.
Market lad inspiration
THE chain is inspired by Tesco founder Jack Cohen, who started selling leftover groceries on a market in 1919.
In 1924 the East Londoner, below, combined the initials of tea-supplier Thomas Edward Stockwell with part of his own surname to launch Tesco.
Dad-of-two Cohen’s motto was “pile it high and sell it cheap”. He died in 1979, aged 80.
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Dave Lewis, Tesco boss, said: "Jack Cohen championed value for customers and changed the face of British shopping.
"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 8 out of 10 products grown, reared or made in Britain."
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The chain also plans to open five Metro stores which will be bigger than a Tesco Express store but smaller than one of its supermarkets.
One Jack's store will be open near to a Tesco store to see how customers shop.
Kantar Worldpanel's shopping analyst Fraser McKevitt reckons it's going to be a while before Jack's makes a dent in in the competition market.
He said: "Plenty of people buy from Aldi and Lidl – around 60 per cent of all households shop in each of the discounters at least once a year.
"However, they spend just £1 in every £10 there and don’t shop at the discounters as frequently as at the big four – given the Jack’s model is so similar we would expect to see shoppers behaving the same way in its stores."
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Reports that Tesco was planning to open the new stores, with prices to rival Lidl and Aldi, first surfaced in February.
Tesco recently said it was going to "simplify" the structure of its store teams putting 1,700 jobs at risk in the process.
Earlier this month it closed Tesco Direct, its online retail platform for tech, toys, clothes and homeware.
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