Tesco 'planning' new discount chain called Jacks

worldtraveller

Britain’s biggest supermarket group is understood to be working on a secret plan to develop a new discount grocery chain to take on cut-price chains Aldi and Lidl at their own game.

Tesco is said to be developing a separate brand that would match the German discounters on price, offering a far more limited range of products than the average Tesco store, at around 3,000 compared with 30,000 in a Tesco Extra.

The retailer is reported to have hired advisers from Boston Consulting Group to work on the plans. It has asked a number of key own-label suppliers to sign non-disclosure agreements before contributing to a new project, according to a report in The Sunday Times.

The Guardian

unforeseen

Maybe that explains why my local Tesco has very little choice these days. They've stopped stocking so many brands in favour of their own that it's not worth using them any more.

robin58

No doubt they will be given a discounted name like 'Tes' :rotfl::rotfl:

Cornucopia

It'll be interesting to see how this turns out, but at the moment, I see Aldi and Lidl as being so good at what they do, and so focused that I cannot see anyone else making an impact without a lot of time, money and effort.

Every lidl helps, though.

martinthebandit

Perhaps if Tesco went back to basics and concentrated on offering value for money instead of concentrating on squeezing as much money as possible out of anyone gullible to pass through their doors they may be able to compete with other retailers better?

Just a thought.

adonis

Perhaps they could use their Express stores, they have a limited range of products and instead of charging a premium over a normal Tesco they could charge less.

jon81uk

adonis wrote: »

Perhaps they could use their Express stores, they have a limited range of products and instead of charging a premium over a normal Tesco they could charge less.

Except the longer hours and smaller store make it more expensive to run the Express stores, hence the higher price. I wouldn't expect Express stores to change as many people are also willing to pay extra for the convenience of not having to go to the large store.

Robots

Doesn't surprise me, Tesco is pretty good at this supermarket thing.

DCFC79

unforeseen wrote: »

Maybe that explains why my local Tesco has very little choice these days. They've stopped stocking so many brands in favour of their own that it's not worth using them any more.

Maybe Tesco and suppliers couldn't agree on the price to charge eg the Branston beans, brands from the Princes group were off the shelves as the 2 parties couldn't agree on the price.

worried_jim

So an expensive Tesco and a cheap Tesco- you'd be a mug to continue shopping at expensive Tesco when you know down the road the same product is cheaper. A complete mug.

Doc_N

Sainsbury tried this a couple of years back by recreating Netto. It was an abject failure and lost them a lot of money.

Aldi and Lidl have been using this business model for around 70 years. They're both very good indeed at what they do.

Tesco are very good at what they do too, but they don't understand this particular sector - which is why they ignored it for so long, to their cost.

They haven't made the decision to go ahead yet, and I doubt they will. If they do, it's going to lose them a lot of money. How happy are Tesco shoppers going to be when they realise the same goods can be had down the road for 25% less? And if they aren't the same goods, but some cheapo 'Tesco Value' version, who's going to want to buy them when they can buy the full-fat genuine version from Aldi or Lidl for the same price?

Doomed to fail.