Yesterday, new details emerged regarding the discount retail brand that Tesco is planning to roll out in its fight against Lidl and Aldi.
The chain is anticipated to be named Jack’s. This comes after a subsidiary of the supermarket filed to register the said name as a trademark. The name is after Jack Cohen, the founder of Tesco.
The Mail on Sunday reported over the weekend that the new format would likely roll out to as many as sixty stores, with some of the currently empty sites of Tesco in the running. The first store could possibly open as soon as September of this year.
However, Tesco has kept its plans under wraps, and refused to give a comment regarding the matter.
The speculation regarding the new stores intensified during the weekend after online advertisements appeared and were containing the message: “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.”
However, some retail commentators have already remarked that the rollout of the new concept will serve as a major development in the fight between the longstanding supermarkets and the discounters from Germany for market share.
However, the executive director of strategy at brand consultancy Landor, Gary Bryant, said that it was more likely to be a reaction to the proposed merger of Asda and Sainsbury’s.
He stated: “The business we expect to struggle most in this new playing field is Tesco. While it has responded well to the entry of the discounters, it will no longer be Britain’s number one supermarket after this deal goes through.
Bryant added: “Not only will it lose its scale advantage, but its brand proposition will become stretched by an enhanced Sainsbury’s at the premium end of the market and a reinvigorated Asda at the value end. It will need to decide where it sits and this tension could impact its competitiveness.”