U.K.: Tesco makes first splash with new discount stores

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U.K.: Tesco makes first splash with new discount stores

From the pages of Produce Business UK

Crowds lined up at 3am outside Jack’s, Tesco’s new discount stores on Thursday to check out the unique low-price offerings. 

In celebration of Tesco’s 100 years, the UK retailer has launched Jack’s, a discount brand with several locations dotted around the country, in honor of Tesco’s innovative founder, Jack Cohen. 

Think Jack’s Milk, Jack’s Cornflakes, Jack’s Baked Beans, Jack’s Bananas, all at radically low prices, that will promote food and drinks produce that are 80 percent grown-and-made in the United Kingdom.

As part of a series of initiatives to pay tribute to Tesco’s centenary, Jack’s will reflect the values of its founder, who began what is now a major UK supermarket chain with a simple, no-frills approach to those people in need.

In 1919, he sold armed forces surplus stock in Hackney, making food available to everyone, but particularly those who couldn’t afford the high street prices. At the outbreak of World War II, he was also said to introduce rationing ahead of the government, making food available for those rich and poor. 

“Jack Cohen championed value for customers and changed the face of British shopping," Dave Lewis, Tesco Group chief executive, said about the new project. "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.”

As part of the Jack’s store presence, Tesco also will launch Jack’s branded goods, a unique range of staple food items that presents shoppers with quality and value.

The stores also will stock well-known brands with an interesting caveat as they fly off the shelves: “When it’s Gone, it’s Gone.” 

The concept will roll out over the next six months, with around 10-15 Jack’s locations slated to be opened around the United Kingdom. The first of the flock opened its doors on  Thursday in Chatteris, Cambridgeshire, and ImminghamLincolnshire. 

The stores to follow will include a mix of purpose-built locations, as well as those that will operate quite literally next door to already existing Tesco stores.

Competing with Aldi and Lidl

Tesco’s no-fuss approach is also a strategic move by the UK retailer to keep those cost prices down, in an effort to compete with discount stores such as Aldi and Lidl

Lewis reportedly has claimed Jack's will beat the prices of Aldi or Lidl.

As part of their range of products, Jack’s will have a Fresh Five fruit-and-veg offer that will be comparable to Aldi’s Super Six. The store will sell 2,600 products, with 1800 branded under the Jack’s label itself. 

Part of the features of the new stores will include wide aisles, self-ready products, and three checkout options for customers, designed to create an inviting and seamless experience, while keeping operating costs down.

The Jack’s brand is headed up for the former Aldi operations director, Lawrence Harvey.

Tesco’s commitment to great value

A core premise for the UK retailer over the past 100 years, Tesco’s initiatives have involved price-cutting and value driven offerings. Other initiatives that mirror this are Operations Checkout, a price-cut plan in an attempt to boost sales which was launched in 1977 by former Tesco UK chief executive Ian MacLaurinTesco Clubcard, introduced in 1995, where shoppers receive points based on the amount spent, as well as Tesco Mobile and Bank, a way for customers to manage their accounts, and spending.

 

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