Shares in Tesco (LON:TSCO) have been little changed in today’s session as the company announced the launch of its new highly-anticipated discount chain Jack’s. The move comes as Britain’s biggest grocer looks to battle German rivals Aldi and Lidl, which have pressured profits at the UK’s ‘Big Four’ supermarkets.
As of 12:09 BST, Tesco’s share price had added 0.12 percent to 235.50p. The stock is marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.40 percent higher at 7,329.75 points. The group’s shares have added more than a quarter to their value over the past year, as compared with less than a one-percent gain in the Footsie.
Tesco launches Jack’s
Tesco said in a statement today that it was launching Jack’s, a new discount format chain named after its founder, Jack Cohen. The new chain will sell its own brand, Jack’s, as well as some familiar grocery brands and a range of general merchandise on a ‘When it’s Gone, It’s Gone’ basis.
“The intention is for us to be cheapest in town,” Tesco’s chief executive Dave Lewis said, as quoted by Reuters.
Jack’s launch follows the latest Kantar Worldpanel data which showed this week that sales at Britain’s biggest grocer had climbed in the 12 weeks ended September 9.
New chain timetable
The FTSE 100 grocer said that the first two Jack’s stores will open tomorrow in Chatteris, Cambridgeshire and Immingham, Lincolnshire, on sites which make use of excess Tesco space. The company will further launch 10-15 Jack’s stores in the UK over the next six months, which will include a mix of entirely new sites, sites adjacent to existing Tesco stores, and a small number of converted Tesco stores.