Tesco to launch new discount store chain in East of England

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Tesco has also launched an array of cut-price goods under in-house brands such as Creamfields, Butcher's Choice and The Growers Harvest, all of which are expected to be stocked in Jack's alongside specialist products under the new chain's name.

10-15 Jack's stores will be launched in the United Kingdom over the next six months, and the first two Jack's stores will open on 20 September in Chatteris, Cambridgeshire and Immingham, Lincolnshire.

The first two Jack's stores are located in Chatteris and Immingham, both in eastern England, and media reports have said that up to 60 existing outlets could be converted.

Most products will be Jack's own brand and the chain, which is named after Tesco founder Jack Cohen, will have 2,600 lines.

"It's what our customers told us", Lewis explained.

Tesco said the brand will "proudly support Britain's food producing communities" with eight out of 10 food and drink products at Jack's grown, reared or made in Britain.

However, Mr Lewis admitted that staff at Jack's will not be paid the same as employees at Tesco stores, but will instead be on "more of a base rate pay".

There will also be a range of general merchandise on a "When it's Gone, It's Gone" basis.

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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.

We met John, who has worked at Tesco since 2007, in the carpark. For context, there are already over 1,300 Aldi and Lidl stores across the country and the two have a combined market share of 13.1 per cent, so Jack's is clearly playing a longer-term game.

With its emphasis on a United Kingdom product base, Tesco has finally launched a response to the high street threat of European retailers Aldi and Lidl.

Jack's is not the first attempt by Britain's mainstream grocers to crack the discounter market.

Over the next six months Tesco will launch 10-15 Jack's stores in the UK.

However, some are concerned Tesco's new format could simply cannibalise sales at its existing stores.

Shoppers used to the ever-changing middle-aisles of Aldi and Lidi will feel at home in the new supermarket, with it's WIGIG ("when it's gone, it's gone") aisle of offers.