Will Tesco be the Jack of all trades or the Master of none?
The first two Jack’s stores, named after Tesco founder Jack Cohen opened last week in Chatteris and Immingham, but is it going to be able to take Aldi’s or Lidl’s share of the market?
Tesco’s chief executive, Dave Lewis, said the chain would sell low-priced, British food and appeal to the “economically challenged that need a bargain and the affluent shopper that wants a bargain”.
He also added: “We will be the cheapest in town. There are full-range, full-service supermarkets, and clearly people want that, but there is a gap in terms of people wanting smaller, simpler, quicker shops and local produce.”
Selling one tenth of the range you would find in a Tesco store and with nearly 80% of the product range sourced from the UK, it begs the questions if this is in retaliation to Brexit? “It’s nothing to do with Brexit,” Lewis insisted. “It is what customers are asking for.”
With queues out of the door on the first day and the prices cheaper or at least matching the top 5 competitors, it looks like Jack’s could be a
contender. However, with few locations announced maybe Tesco needs to go hard or go home.
Maybe Mr Lewis will have to consider putting the 172 Metro stores to better use if Jack’s really is the success he hopes. But then again would the space and money be put to better use by someone else? I guess only time will tell.
What is the discounter next move?
The German Giants are unlikely to go down without a fight. After nearly doubling their market share in the last 5 years and the growth of the businesses outpacing the other supermarkets I’m sure the battle will continue. Especially now former Aldi executive Lawrence Harvey is set to run Jack’s.
Aldi have even suggested price cuts in its Chatteris store, which is now in direct competition with the new discounter. “Our customers will always pay the lowest grocery prices in the UK every time they shop with us,” an Aldi spokesman said.