Supermarket giant Tesco has launched its own discount grocery store in an effort to take on its rivals Aldi and Lidl.
The new brand, named Jack’s after Tesco founder Jack Cohen, will operate a low-cost business model with a simplified range of products at low prices, and a range of general merchandise on a “When it’s Gone, It’s Gone” basis.
Tesco is investing £25m into the venture, with two branches already open and 10-15 more expected in the next year. While Tesco is currently the UK’s supermarket leader its market share has been sapped by the discounters. The big question is whether this will win back market share or just cannabilise Tesco’s existing customer base.