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Meet Jack's - Tesco's answer to Aldi and Lidl

By James Sillars, business reporter
Tesco has unveiled its new concept store Jack's, as it seeks a slice of the growth achieved by budget grocery chains Aldi and Lidl.
Britain's biggest retailer will open its first two Jack's stores tomorrow in Chatteris, Cambridgeshire, and Immingham, North East Lincolnshire - Tesco sites that were closed down four years ago.As part of a project more than two years in the planning, up to 15 stores will open over the next 12 months, with five existing Tesco properties being re-purposed and the remainder being new outlets.Most products will be Jack's own brand and the chain will have 2,600 product lines, compared to tens of thousands in most Tesco stores. Around 1,800 products will be under the Jack's brand.

Why is Tesco launching Jack's?


Meet Jack's - Tesco's answer to Aldi and Lidl

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Aldi and Lidl have grown their respective market shares, while Tesco's has fallen by 0.5%
Jack's - a salute to Tesco's founder Jack Cohen - aims to be a no-frills discount brand to challenge the meteoric rise in market share enjoyed by Aldi and Lidl since the financial crisis.The latest industry figures produced by Kantar Worldpanel show market share growth for all the major grocery brands in the UK - a consequence of essential spending holding up well amid a sweltering summer.But the data, covering the 12 weeks to 9 September, showed Tesco's slice of the overall action was 0.5% down on the same period last year.In contrast, Aldi and Lidl had grown their respective market shares to 7.6% and 5.5% respectively. Tesco remains the biggest player by some margin on 27.4%.However, its dominance is also threatened by another big deal as 'Big Four' rivals Sainsbury's and Asda plan a €15bn merger that would make a combined company the biggest supermarket chain by share.
Jack's 'cheaper to run' than Tesco stores


Meet Jack's - Tesco's answer to Aldi and Lidl

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Tesco said prices at the Jack's stores will be kept down through lower operating costs
Speaking at the launch of the store in Chatteris, Tesco chief executive Dave Lewis said he was interested in "what our customers want" and providing “local provenance" at "a very affordable price.”He insisted he was not worried about undercutting existing Tesco stores.“Because of that range and the simplicity, how we run the store is cheaper to run,” he said. “What we’ve done is pass that benefit on to our customers.”
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