The national press has reported that Tesco is preparing to launch a new discount chain as the supermarket ‘ramps up its battle’ with UK discounters Aldi and Lidl.
Reports claim that Tesco will name the rumoured new chain ‘Jack’s’, and that up to 60 stores could be launched.
The claims are supported by the fact that the retailer has been spotted advertising for staff for a new store format in Immingham, Lincolnshire, and Chatteris, Cambridgeshire.
The Guardian has also reported that Tesco has confirmed that a medium-sized Tesco Metro in St Helens in Merseyside will reopen under a new name and the paper claims that workers at a Tesco Metro in Edge Hill, Liverpool, which is set to close, have been promised potential jobs at a new store set to open within five weeks.
Online job adverts for some of the sites are said to state: “The new retail format will be operated separately from the core Tesco business and as such benefits offered will be different from those offered at Tesco.”
According to the Mail on Sunday, Tesco executives have been combing through thousands of potential sites to examine which might be appropriate, with reports that up to 60 could be transformed initially.
According to Kantar Worldpanel data, Lidl is the champion in terms of growth in the 12 weeks to 17th June 2018, and Aldi has edged up to a new record high market share – it now stands at 7.4% thanks to sales growth of 8.2%
Out of the big four supermarkets – Tesco, Sainsbury’s, Asda and Morrisons –Morrisons was the fastest growing, posting a sales increase of 1.9%
Food Management Today contacted Tesco for confirmation of the new discount chain but the retailer declined to comment.