Tesco's new discount chain Jack's takes on Aldi and Lidl

Workers unveil the branding at Tesco’s new discount supermarket Jack’s in Chatteris Britain

Workers unveil the branding at Tesco’s new discount supermarket Jack’s in Chatteris Britain

The giant british Tesco retail tent betting discount with its new chain of shops, Jack's, created to compete on their ground, the German Aldi and Lidl, in full boom in the United Kingdom.

"Great tasting food at the lowest possible prices with eight out of 10 products grown, reared or made in Britain".

The first two Jack's stores will open to shoppers on Thursday, with another 10-15 following in 2019 as Tesco seeks to compete better with the German upstarts whose limited-range stores have won over increasing numbers of British shoppers since the economic crisis hit in 2008.

Dave Lewis, chief executive of Tesco, opening the new Jack's store in Chatteris.

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"We leverage the size and expertise that's available to Tesco and Tesco partners and we bring that capability to Jack's in an operating model that is lower and we pass that benefit on to our customers", Mr Lewis said on Wednesday.

"This is first and foremost about how we celebrate the centenary", Lewis told reporters at the Chatteris store, which was built as a Tesco supermarket but mothballed in 2015 when the group was in crisis.

Like the German duo, Jack's stores will have lower operating costs than Tesco outlets due to their smaller range of products and simplified design.

Faced with increased competition, Tesco's biggest United Kingdom rivals Sainsbury's and Walmart-owned Asda are looking to merge.

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Some 1,800 of the 2,600 products stocked in store are Jack's branded.

Some items did seem cheaper in Jack's: olives were 10p cheaper and Cherry Bakewell box 30p cheaper than in Tesco.

Staff at existing Tesco stores slated for conversion have all been offered roles either at a Jack's or a Tesco but some have opted for redundancy. Jack's will also be based around a UK-based own-brand approach.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: "With its heavy Union Jack branding and promises on provenance Jack's is clearly looking to make its name as a solid British retailer".

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"It goes without saying, but Tesco will have to find a way to attract customers from the likes of Aldi, Lidl and Iceland, rather than convert existing Tesco customers into discount shoppers through brand association". Jack Cohen founded Tesco 99 years ago in 1919.

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