British supermarket group Tesco is fighting back against German discounters Aldi and Lidl by launching its own discount chain.
Tesco CEO Dave Lewis unveiled Tesco's new Jack's chain on Wednesday this week. The stores will sell 2,600 products, including 1,800 Jack's-branded items. Tesco describes Jack’s as “the cheapest store in town.”
Reuters reports that 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 more and more British shoppers since the economic crisis of 2008.
Together Aldi and Lidl now have a combined 13.1 per cent market share, eroding the dominance of market leader Tesco as well as its three main rivals – Sainsbury's, Asda and Morrisons.
Jack's is named after Jack Cohen, who in 1919 founded the business that became Tesco, and is a major move by Lewis, who has rebuilt Tesco after a 2014 accounting scandal capped a dramatic downturn in trading.