What do shoppers think of the new Jack's brand launched by Tesco?

Dave Lewis Tesco chief executive said that Jack’s would offer “the cheapest products in town”

The first two Jack's stores will open to shoppers today, with another 5 to 10 following in the next six months as Tesco copies the tactics of the German discounters, whose limited-range stores have won over increasing numbers of British shoppers since the economic crisis hit in 2008.

The Chatteris store enjoyed a successful first morning, right, with hundreds pouring through the doors at 10am to be greeted with champagne, bacon sandwiches and cupcakes.

A second mothballed store will become a Jack's, it said, while five existing Tesco shops will be changed to the format.

As part of the Jack's store presence, Tesco also will launch Jack's branded goods, a unique range of staple food items that presents shoppers with quality and value.

"However, we also forecast very strong earnings per share growth out to full-year 2021", he pointed out, adding that the supermarket had scope for further deleveraging and "indeed we can not rule out that Tesco may follow where Morrisons' has led, in exploring recurring special dividends in time".

It will operate a "low-cost business model" created to keep costs low and prices down.

Workers unveil the branding at Tesco's new discount supermarket Jack's in Chatteris, England.

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

The new discount brand is named after Jack Cohen, who founded Tesco in 1919, and the launch coincides with the company's centenary celebrations.

Tesco now offers over 25,000 products but Jack's will only offer 2,600 products including Jack's own brand items as well as big brands such as Coca Cola, Cadbury's and Lea & Perrins. "Great-tasting food at the lowest possible prices with 8 out of 10 products grown, reared or made in Britain".

Sir Jack, who was born Jacob Edward Kohen to Polish parents in 1898, was a Whitechapel grocer who served in the British Army in Egypt and Palestine during the First World War before returning home to establish the business in Hackney.

The German duo have eaten up the market share of the Big Four by offering products at knock-down prices.

"Plenty of people buy from Aldi and Lidl - around 60pc of all households shop in each of the discounters at least once a year", he said. But, it seems, another way to beat the discounters is to play them at their own game. In response, Tesco seems to be further developing its Metro and Express models to incorporate customer demand for convenience and competitive pricing.

Perhaps Tesco can learn from its rivals' failed attempts at thriving in the discounter market. "However, it is undeniably an innovative move that's sure to apply further pressure to the other mainstream retailers".



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